Table of Contents
1. Introduction.. 3
2.3 Impact of the current trends. 4
3.3 Justification for choosing the topic. 6
1. Introduction
The proposal will explore the recent trends in the retail industry, focusing on three particular themes which will be explained briefly in the background. The chosen company is Lidl, a German supermarket company. Lidl global sales grew by 8.5% in 2020 during the pandemic which accounts for key drivers that brought about certain changes in retailing. The potential impact of the Covid-19 pandemic, customer-centric approaches and e-commerce development on the selected supermarket will be explicitly discussed. The aims and objectives for the research to be conducted will be discussed in the proposal.
1.1 Title of the research
To investigate how online retailing drives customer-centric approaches in Lidl after the Covid-19 pandemic
2. Background
2.1 Company overview
Lidl is a German supermarket company which has been operating in the UK as one of the preferred grocery retailers. As of the year 2021, Lidl has accounted for a turnover of 7,710 million British pounds in the UK which has increased significantly compared to that of 2013 (Statista, 2022). By operating in a foreign location, the German grocery retailer has been able to make a profit of 9.8 million before taxes with an increasing workforce which has now around 25000 employees. It is known as the 6th largest grocery retailer with a market share of 7.1% (Statista, 2023). Considering the popularity of the company, it has been found that 44% of the customers liked Lidl and its products (Statista, 2022a).
Figure 2.1: Sales growth in Lidl after the pandemic
(Source: Statista, 2023)
2.2 Three key themes
The three main themes identified across the research topic that has been stated below are the current trends in the retail industry.
- The impact of the Covid-19 pandemic that occurred in 2020.
- The growth of e-commerce in the retail sector in the UK.
- The increase in customer-centric approach in the retail sector.
2.3 Impact of the current trends
The Covid-19 pandemic occurred in the year 2020 due to the outbreak coronavirus which brought about various changes in the retail sector. The sales volume of the retail industry in the UK was largely affected and it fell by 1.9% in 2020 (ons.gov.uk, 2021). On the other hand, online sales increased with the downfall of the sales at the physical stores. E-commerce growth was accelerated largely as a result of the pandemic effect in the UK which satisfied customers. The retailers identified a paradigm shift in customer behaviour due to the increased online retailing. This market trend impacted Lidl which required the company to implement customer-centric approaches. According to Pantano and Willems (2022), customer-centric approaches include incorporating chatbot service to solve customer queries, home delivery options and contactless payments.
Figure 2.1: Impact on the UK retail sector during a pandemic
(Source: ons.gov.uk, 2021)
3. Aim and Scope
The aim of the research is to analyse how online retailing drives customer-centric approaches in Lidl after the Covid-19 pandemic.
3.1 Objectives
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To identify the impact of the Covid-19 pandemic on the UK retail sector
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To analyse the significance of online retailing in driving customer-centric approaches in Lidl
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To understand the challenges faced by Lidl during a pandemic
- To recommend Lidl effective solutions to address the covid issues
3.2 Research Questions
- How did the Covid-19 pandemic impact the UK retail sector?
- What is the significance of online retailing in driving customer-centric approaches in Lidl?
- What challenges have been faced by Lidl during the pandemic?
- What recommendations have been provided to Lidl to mitigate the identified issues?
3.3 Justification for choosing the topic
The current trends namely, pandemic, online retailing and customer-centric approaches have brought about significant changes in the retail sector and paradigm shifts in customer behaviour. It has required explicit discussion and analysis due to which Lidl has been chosen as the case study company using which the topic will be explained.
4. Methodology
Hereby, the methodological point of view of conducting the research has been provided to account for the procedure to be obtained during the study. Both primary quantitative and secondary qualitative data will; be obtained to conduct the study. For obtaining primary quantitative data, the survey will be conducted to obtain information from the participants on the concerned topic. Secondary data will be acquired from journals, nooks, articles and websites. Positivism philosophy will be obtained in the study along with the deductive approach.
- To identify the changes in the retail sector of the UK due to pandemic
- To analyse the impact of online retailing in the grocery market
- To analyse the impact of the external environment on the retail sector
- To conduct a survey and acquire information from secondary sources
- To provide a recommendation to the chosen company
5. Gantt Chart
Figure 5.1: Gantt chart
Reference List
Pantano, E. and Willems, K., (2022). Retail in a New World: Recovering from the Pandemic that Changed the World. Emerald Group Publishing.
Statista, (2022) Turnover of Lidl in the United Kingdom (UK) 2012-2021. Available at: https://www.statista.com/statistics/919806/lidl-turnover-in-the-united-kingdom/ (Accessed 31 March 2023)
Statista, (2022a) Lidl brand profile in the UK 2022. Available at: https://www.statista.com/forecasts/1335787/lidl-grocery-stores-brand-profile-in-the-uk (Accessed 31 March 2023)
Statista, (2023) Lidl sales growth year-on-year in Great Britain 2014-2022. Available at: https://www.statista.com/statistics/386773/lidl-sales-percentage-change-great-britain-uk/ (Accessed 31 March 2023)
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