Giving economic circumstances over the last five years of how Tesco, Essay

Giving economic circumstances over the last five years of how Tesco, Sainsbury and Morrisons have coped - Essay Example 1, the economy is contracting. The situation affects retailers because of the low purchasing power of consumers. BBC said that the rise in sales will be slower than expected, with a rise predicted at only 1%. Analysts blamed rising prices are the cause of the slow growth of retail sales. Economic outlook of UK for 2013 as raised by the Confederation of British Industry will stagnate and the Bank of England will refrain from a stimulus expanding. Their forecast is that the recession economy will stay until 2014. Purpose of the study is to analyze steps taken by the giant superstores to cushion the effect of recession, and strategies they plan to stay in competition. Since recession is not over yet, the study will benefit smaller retail stores in designing strategies that will reduce impact of recession in its operations. 4. Methodology . This study will make an analysis of performance of the three retail giants in UK during recession period using comparative analysis of its financial performance as an indicator. Review of its annual reports will show strategies implemented to survive the economic recession challenge. Government policies to stimulate economy will also be inspected TESCO is one of the world’s largest retailers with operations in 14 countries, employing over 500,000 and serving tens of millions of customers every week. Diversified businesses: retailing of books, clothing, electronics, furniture, petrol and software, financial services, telecoms and internet services, DVD rentals and downloads. It has repositioned itself from a cheap retailer to finest ranges of higher quality merchandise. SAINSBURY was founded in 1869 and operates over 1000 stores including 440 convenience stores. It operates joint ventures with Land Securities Group plc and the British Land Company PLC. It has on-line ordering system and a roll-out delivery system. Sainsbury Finance provides credit cards, insurances, and savings and loans, and an