Slide 8: Tesco Social Factors
The ageing population is discouraging for the food retailers older people tend to eat less. They are less likely to travel to supermarkets to shop compared with the younger generation. Although internet literacy level drops over the age of 65 years within the population it has nevertheless been predicted that the ageing population would find online shopping more convenient. However, small deliveries are considered to be ineffective and expensive. Consumers’ attitude towards food is incessantly changing as they have become more health- conscious. An increase in the demand for organic food has been accommodated by Tesco to reflect this change in demand. Payment by cheques and cash at the checkout was first made possible by Tesco. Slide 10: Tesco Ecological & Environmental Factor
Environmentally friendly, reduced packaging is being promoted by the Government. The percentage of consumers using reusable bags has risen from 71% to 74% and that those trying to cut down the number of plastic bags they take from the shops has risen from 65% to 68%. This assists in reducing the overall cost and is good for Tesco’s corporate social responsibility image. Slide 11: Tesco Political & Legal
Tesco will set up a premeditated series of joint ventures for the development of shopping malls in China. This joint venture included three malls: Anshan, Fushan and Qinhuangdao. Furthermore, 18 new hypermarkets are expected to open in China by 2010. The growth of Tesco’s international business segment is on the rise and it is predicted to account for one quarter of the company’s profit.
Slide 12 Tesco Economical
Economic factors are a matter of concern for Tesco since they impact directly on the buying behavior of customers. Although the UK economy was declared officially under recession in 2008, the government’s substantial reduction in interest rates helped to minimize further rises in unemployment during 2009....