Retail Industry in the UK Essay Example | Topics and Well Written Essays - 1500 words

Retail Industry in the UK - Essay Example In the year 2010, the industry was responsible for the creation of additional 12,750 full time jobs and the total number of jobs increased by 2.1% in comparison with the previous year. The total number of people employed by the industry in the year 2010 was 2.9 million which roughly accounts for the 11% of the total workforce in the UK. From this fact, it can be inferred that the retail industry holds a very prominent position in the economy of the UK. From economic activity to employment, the retail industry affects a number of factors in the economy of the UK. In 2010, there were 286,680 retail outlets in the UK and the number has grown in the year 2011. More than a third of the total consumer spending the region goes through shops. Retail industry generates around 5% of the Gross Domestic Product of the UK. Consumers are also taking interest in shopping over internet and the sales over internet account for around 7% of the total retail sales and the number is estimated to grow sig nificantly. FINDINGS Retail industry is one of the strongest industries in the UK. The industry has witnessed significant growth in the recent years. Every industry is influenced by certain economic and social factors and in case of retail industry the most important economic factor is inflation. With the rise in inflation, the prices of consumer products also rise. Thus the consumers refrain from buying and the overall retail sales go down. Other social factors that may influence the retail industry may be the prevailing trends in clothing and the weather conditions. Such are the indicators that help the retailers take steps proactively in order to save themselves from any significant impact. The following review of the retail industry in the UK would also focus on the impact of such economic and social factors in the last quarter of the year 2011.... With the rise in inflation, the prices of consumer products also rise. Thus the consumers refrain from buying and the overall retail sales go down. Other social factors that may influence the retail industry may be the prevailing trends in clothing and the weather conditions. Such are the indicators that help the retailers take steps proactively in order to save themselves from any significant impact. The following review of the retail industry in the UK would also focus on the impact of such economic and social factors in the last quarter of the year 2011. REVIEW OF RETAIL INDUSTRY FOR THE LAST QUARTER OF 2011 The start of the last quarter of 2011 was slow for the retail industry in the UK however the sales grew significantly towards the end of the quarter. There were a number of economic and other factors responsible for the trend of sales observed in the last quarter of 2011. One of the most important factors behind this trend of sales volume was Christmas which always impacts the retail industry positively. A boost in the internet sales was also witnessed in this quarter. Following is the month by month review of the retail industry in the UK for the last quarter of 2011. Retail Industry in October 2011 The overall retail sales volume increased by 0.6% in the month of October as compared to the previous month. This increase was higher than what was expected by the economists. The absence of any social factors to cause an increase in the sales volume led the economists to estimate a decline in the sales volume in comparison with the previous month but the sales volume increased. The benefit of this increase in sales was enjoyed mostly by the small retailers while the large stores had to lose their overall sales