What is the General Basis of the Food Price Wars?
The general basis of the food price wars conferring to (Sheik, 2016), is caused by the footfall in the UK, which dropped to 2.8% in June from the preceding year. Moreover, this reduction is the severest since February 2014 that appears to justify the extensive alarms about how destabilized customer assurance and the degraded British pound ensuing from Brexit will hurt the vendors. Brexit's effect on the footfall weakening is undeniable: UK stock visits improved 0.3% in May and 0.4% the first week of June before reducing 4.6% during the week of the EU poll and 34% during the rest of the month, regardless of the summer trades by the dealers.
How Might Brexit Prove to be a "Blessing' for Food Retailers?
Brexit can prove to be a blessing for the food retailers by arising from the hardest price wars in the current times. Combatting against the flourishing development of the German discounters including, Morrisons, Asda, Sainsbury's, and Tesco have all been compelled to cut their costs assertively. As a result, the food section has hardly developed for two years, and inflation sticks at around 2Pc (Armstrong, 2016).
Specifically which Country(s) Started the Price Wars and which Retailers were Impacted?
The price conflict started in the Dutch grocery trading in the plunge of 2003, instigated by the market leader to terminate its diminishing market segment. At the beginning of the 2000s, the heading Dutch hypermarket chain Albert Heijn experienced a disparaging and dwindling price image, which was distressing in the light of the escalation of hard discounters (Aldi and Lidl) and degrading the economic situations. In spite of their constant conviction in the dealer's quality and services, limited customers could justify paying such high prices. Further, after numerous years of a decreasing market segment, Albert and Heijn opted to reduce its costs for more than 1000 products on October 20, 2003 (Van Heerde, Gijsbrechts, Pauwels, 2007).
How will these benefit the Consumers?
The price increase will creep back in as dwindling sterling prices will cause the food importation from the overseas to rise. It will require the consumer to pay more, and on the other hand, grocer's food inflation can be a beneficial thing for their bottom lines. The market experts at Bernstein deem that consumers can take in the price rise of about 4Pc, an extra 3P on the value of a container of Heinz Baked Beans. Nevertheless, beyond that, the efficient character of the UK food marketing setting means that they are extremely conscious that the purchasers will ensue giveaways. Further, having expended years refurbishing their products, it would be a disgrace for them to begin losing customers to the discounters all over again (Armstrong, 2016).
What will be the Benefit for the UK to Start a Made in Britain?
Besides, there are benefits considering the UK textile industry. According to (Ashley, 2016), the Alliance Report last year on the banishment of the UK textile industry alleged that regardless of competition from abroad, the business is undergoing both local and international development and is worth 9bn pounds to the economy. Furthermore, it is indicated that in the previous year alone 5,000 jobs were done in the UK textile-production section with further 1,500 jobs projected by 2020. Besides, Asos, Britain's leading online fashion seller disclosed its strategies ahead this month to double its UK production source, mentioning the profits of the post-Brexit sterling decline that enables internal manufacturing more reasonable. Presently, just four Pc of Asos' clothes are fashioned in two companies in London consisting of an embroidery college.
Do you see a Correlation in our Drive for made in America/made in NY Campaigns? Explain
According to (Street, 2002), motion picture appraisals frequently set an atmosphere for a crusade, commending how to whom it should be offered. Further, it was observed that there was an unswerving association between the box-office achievement of the alien motion picture and their critics. The American criticizers now have the definite life-or-death opinion on the British and external imports. The view of the New York and the movie business media was prominent ever since the evaluations were cited in the press books, incorporated in the advertising material and used as prototypes for local commentators who were incapable of seeing the film. Moreover, when the New York media studied the concise meeting, the film Herald, the trade papers that were most attuned to the box-office potential also commended it. The diversity did not take into account its British theme and performers as an obstacle to the American reception; instead, it recognized an outstanding addition to the increasing list of the British made attributes skilled to in appealing to the global market.
How will Brexit Presumably Impact off-price retailers? Online Retailers? UK based brick and mortar Retailers.
Equally important, it is possible that the UK- based trader with a resilient e-commerce charisma will prevail over the thrashing in brick-and-mortar with considerably upgraded online transactions (Meyar, 2016). The shopper's globally will exploit on the feeble British pound, influence the pounds favorable trading rates against the euro, and other currencies to assure rip-offs of non-UK based traders who will not be able to match. As a result, the British e-business establishes will encounter growth in upwardly mobile search, transfer and acquisitions. Besides, this will include the EU levying taxes and tariffs on merchandises from the UK. The attempt will not only inspire the UK industry selling products to the EU shoppers but also the vendors and the industrialists in the EU that depend on the UK traders to manufacture their products.
Armstrong, A. (2016). The Telegraph: How Retailers can Fashion their way Through Brexit. Retrieved from https://www.telegraph.co.uk/.../how-retailers-can-fashion-their-way-through-brexit/
Armstrong, A. (2016). The Telegraph. Made in Britain: will Brexit spell the march of the makers? Retrieved from https://www.telegraph.co.uk/business/2016/12/26/made-britain-will-brexit -spell-the-march-of-the-makers.
Sheik, M. (2016). Retail touch points. Brexit's potential impact on Retailers. Retrieved from https://www.retail touchpoints.com/features/.../brexit-s-potential-impact-on-retailers.
Van heerde, H.J., Gijsbrechts, E., Pauwels, K. (2007). Winners and Losers in Major Price Wars. Retrieved from http://mba.tuck.dartmouth.edu/pages/Faculty/koen.pauwels/Pauwels%20updates%202007/pricwwarseptember272007.doc.
Street, S. (2002). Transatlantic Crossings. British Feature Films in the USA. Continuum, New York, London.
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