The Need for Having Discount Stores within the British Retail Landscape - Term Paper Example

Discount Stores – A source of respite for the middle tier Introduction British supermarkets are expensive but it is the manner in which they conduct their retailing business that makes them the hottest business present on planet earth. Retailing is indeed a win-win game as far as British supermarkets and chains are concerned but the aspects that need pertinent attention here include the fact that these supermarkets are making a name for their own selves within the differing market scenarios and thus creating their own niche with the passage of considerable time. (Thomas, 1993, 70) The purpose of this report is to offer a first hand understanding of the need of having discount stores within the British retail landscape as well as suggesting a differentiating link between the affluent superstores which are considered as a ‘hit’ amongst the elites while the discount stores are deemed as haven for the masses. The type of research for this report is substantiated on secondary links, whereby books, journals and magazines have been made use of. This provides a more authenticated and genuine feel of the subject at hand and documents what has already been written about this subject at stretch. An Overview of Consumer Trends Consumer trends have changed in the last two decades or so. People are more conscious of their spending patterns now as compared to yesteryears. This is because money is difficult to earn yet it is with everyone. (Wedd, 1998) The purchasing ratio has also increased as times have changed. More and more people throng superstores and markets of similar nature which brings one to an understanding that there is an upsurge within the relevant consumer buying levels. However it also means that within the retailing context, people now have more purchasing power than ever before and they want to choose between prices that are offered to them along a line of diverse retail chains and outlets. Thus the aspect of changing consumer trends has brought in changes within the way markets have been shaped up in the current times as well. This is a healthy challenge for the expensive supermarkets like Sainsbury and Tesco situated within Britain and has opened a door for the low-priced discount stores – a sure haven for the not-so-privileged and the generally well-known working class of United Kingdom. (McGoldrick, 1990, 451) The role of government and trade regimes is of utmost significance here since they must devise proper ways and means through which policies could be devised and everyone must get his proper share within the related context of things. Without proper advertising, retailers can only think of their products lying on the retail outlets waiting for angels to come and satisfy themselves. Evidence of consumers increasing interest in discounting Discount is usually appreciated by the middle tier of any society. This is because discount offers them a chance to maximize their savings and attain the products and/or services which they want to purchase at a lesser price than they would pay at an up-scale supermarket. This is a generally known fact that discount stores are an instant hit within the masses and only the real elites within any society, area or region become die-hard fanatic shoppers of the expensive retail chains and supermarkets, not only within Britain to state the least. Thus the whole focus of discounting within Britain is bent upon the middle class as it is the easiest of the shoppers/customers to come by within such retail outlets. The kind of advertising that is done on the print, television and radio media as well as the below-the-line form of advertising has accounted for the fact that this form of retailing is indeed a success right from the very onset. (Author Unknown, 2007) With the passage of time in the realms of the British consumer landscape it is a known fact that the discount stores like KwikSave is working wonders by providing products and offering services that the usual middle category buyer would not think of purchasing at the affluent superstores within Britain like Asda and the like. Thus these concepts give rise to the theory that discount can provide quick bucks to the related business fraternities who are related with providing discount stores in the first place but this is only possible when discount stores are ready to keep certain products which are in line with those products’ intended image and the identity. The response of existing retailers It is a known fact that the existing retailers show resentment since their shoppers are thwarted away from their expensive supermarkets and affluent superstores towards the discount stores. They raise hue and cry every now and then and try to lobby with the trade regimes present within the domains of the government’s different functions to abandon the concept of having discount stores in the first place. They believe that people must shop from their outlets but they sadly forget the fact that their supermarkets are not only expensive to the core but also not meeting the required expectations of the middle tier within any society, let alone the British one. (Gilbert, 2002, 132) It is for this matter that the discount retail outlets have come about in the last two decades because there was a need to exploit the relevant marketing opportunity for which the consumers and shoppers have shown encouraging signs and the same have continued and will prosper even further in the years to come. Thus the response of existing retailers from the segment of expensive supermarkets as discussed above is not only negative but also discouraging but the response shown by the discount stores themselves is good since they know that their business would not only benefit for their own betterment but also put into action a healthy competition between these discount retailers as well. People need to be told the plus points of their brands (by the retailers) so that they actually go out and make the eventual purchase. Examples of current practice The changing face of British retail has brought in advantages and disadvantages for one and all. However what is significant in this discussion is the fact as to how Britain copes up with this pressure in the times to come. The current practices within the British retail industry has looked after the interests of the middle tier and thus the affluent superstores are forming their own respective niche segments and entering into the discount arena, not necessarily with the same name. The aspect of naming is significant since similar names bring in the aspect of brand dilution of the already developed name present within different retailing markets, spread in different regions of the world. However territorial changes could be approved by the parent organizations but the same are better not touched within these discussions. Current British practices have also called for introducing wholly new discount stores within the realms of the discount retailing industry and this is a new concept that has made the rounds all said and done. Conclusion Marketing theorists have been strong at making one and all understand the intricacies related with the retail infrastructure as to how different retailing philosophies have shaped up in the modern day setting of setting up retail chains, discount stores, franchise supermarkets, etc. The need is to draw evidence from the working basis of these theorists and the present research done on the relevant subject since it documents a whole new world of supply chain decisions, sales management techniques and the way in which middle tiers of the society go about doing their shopping. There is also an element of understanding the needs, wants and desires of the related target audience in the light of ever changing needs. Perhaps Kotler states it perfectly when he asserts that the retailing needs have changed with the passage of time, more so brought together by the growing usage and expansion of technological regimes. The usage of sales management studies and retail comprehension has benefited to the whole dogma of discount stores, merchandizing and affluent supermarkets. Now is the time to make people realize that retail management can bring in the much needed customized options which seemed to be missing in the yesteryears. Essentials such as market skimming, market penetration and the like have helped the cause of retail tactics and strategies for the last two decades now. These would be further strengthened by the help and facilitation from the newly forming retail theories, marketing strategies and tactics in the days to come. In the end, it is quintessential to understand that retailing has changed the face of the British supermarkets and chain outlets. This change might not be for the betterment of these chains and affluent supermarkets but has surely helped the discount outlets into developing their own niche in due course of time. Without a shadow of a doubt, these discount retailers will continue to blossom increasingly well in the times to come as well as make wholesale changes within their business game plans and offer more than just discounts to the discount-seekers at the end of the day. (Hunt, 2003, 134) Marketing and more specifically retailing avenues will continue getting changed in the coming years since this is a developing field and much progress will be expected to happen sooner rather than later. The need now is to understand and foresee the potential the world of retailing and meticulously discount stores bring to the table considering in essence the British retail landscape. References AUTHOR UNKNOWN. (2007). Holiday Sales Seen Rising at Slow Pace; Retail Group Cites Credit Crunch. The Washington Times, September 20 (Newspaper article, no page number) GILBERT, David. (2002). Retail Marketing Management. Financial Times/Prentice Hall, pp. 132 HUNT, Robin. (2003). Retailisation: The Here, There and Everywhere of Retail. Europa, pp. 134 McGOLDRICK, Peter. (1990). Retail Marketing. McGraw-Hill Publishing, pp. 451 THOMAS, Colin J. (1993). Retail Change: Contemporary Issues. UCL Press, pp. 70 WEDD, George. (1998). The Supermarket Revolution. Contemporary Review, Vol. 272 (Magazine article, no page number) Word Count: 1,573 Read More