Pestel Analysis Of Sainsbury

c) How has retailing changed in the past years

Shoppers know as much as salespeople: then people came into stores with little to no knowledge and relied on a salesperson to advise them on what to buy. Today’s shoppers have become accustomed to doing their own research to get the maximum value out of every dollar they spend, and to feel secure about the purchases they’re making.

Mobile devices drive foot traffic to stores: Finding the right store and the product you needed depended on familiarity, or serendipity. But now as the lines blur between online and offline, innovative retailers are integrating mobile into their brick-and-mortar store experience. When shoppers search for a store name or category, they expect to see a map with directions,

It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration.

Political factors: how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability.

The political factors in the United Kingdom have a great influence on the performance of Sainsbury. Currently in UK, the government debts and the consumer debts are very high. This impacts the customer attitudes and therefore business conditions experience great pressure. Sainsbury has to not only operate in these market conditions but also has to develop their business continually. Although the political factors are not favorable, Sainsbury has been able to sustain a steady growth due to its long heritage of offering great product quality at competitive

Environmental factors include weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance.

There has been a great pressure on the organizations and management to act in a socially responsible manner to keep the environment safe. Organizations impact the environment in both direct and direct ways. Sainsbury has taken an initiative in this area by championing in their ‘Reduce, Reuse, Recycle ' approach that effectively manages waste, packaging and recycling. They are also working to reduce their operation carbon footprints.

Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

The government legislation and policies have a direct impact on the performance of the organization. For example the legislation that introduced a new tax on advertising highly processed and fatty foods. Sainsbury adapted to this new tax by modifying its products and also complied with the legislative