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UK Retail: a Comparison of Information Needs and Supply Across Three Sectors of the Industry

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UK Retail: a Comparison of Information Needs and Supply Across Three Sectors of the Industry UK retail: a comparison of information needs and supply across three sectors of the industry by Maria Kiely, B.A.(Hons) A Masters's Dissertation, submitted in partial fulfilment of the requirements of the award of the Master of Arts degree of the Loughborough University of Technology September 1994 Supervisor: Mr. Derek Stephens, MSc, M.I.lnf.Sc Department of Information and Library Studies • :".~, r:> ,..~ ".- ~ v888/L!-~3 ABSTRACT This research examines whether information needs and supply differ across sectors of the retail industry. Three sectors are selected for examination; grocery retail multiples; mixed retailers; and booksellers, stationers and newsagents. The study addresses three key areas; information provision; information needs; and information supply. It identifies the nature of business information provision in large retailing organisations; ascertains if, why and how information needs are changing; assesses the impact on company information needs, of three key trends; retai I internationalisation and the opening of the Single European Market; green consumerism; and the recent recession; identifies the nature of information supply; examines the use of external information providers; and identifies gaps in business information products available. A multiple methodology was adopted using case studies and a questionnaire. 9 companies participated in the study; 4 mixed retailers; 2 bookseller, stationer and newsagents; 2 grocery retail multiples; and 1 company providing a retail information service. The study.reveals the heterogeneous nature of i~formation provision within large UK retailing organisations, even when divided into sectors. The survey results illustrate significant changes in information needs across all sectors of the retail industry, in the las t five years. Information needs are shown to reflect sector-specific retail trends and issues, industry wide retail trends, as well as individual company operating practices. ACKNOWLEDGEMENTS I should like to thank: Derek Stephens for his invaluable guidance and help in supervising this project. The John Lewis Partnership PLC, W H Smith PLC and Management Horizons for their time and assistance. Mum and Dad for their support and encouragement. CONTENTS PAGE ACKNOWLEDGEMENTS ABSTRACT INTRODUCTION ............................................ 1 0.1 Definition of terms 2 0.2 Aim of study 3 0.3 Objectives of study 4 0.3.1 Information provision 4 0.3.2 Information needs 4 0.3.3 Information supply 4 0.3.4 Sector comparison 5 0.4 Study outline 5 CHAPTER ONE: RETAILING IN THE 1990'S: CURRENT TRENDS .... 8 AND FUTURE DEVELOPMENTS 1.1 Retail internationalisation 8 1.2 Niche opportunities 1 1 1.3 The economic situation 1 1 1.4 Green consumerism 1 2 1.5 Employment and the work force 1 4 1.6 Demographic and consumer trends 1 4 CHAPTER TWO: CHOSEN SECTORS. DEFINITION AND ANALYSIS .... 18 2.1 Classification of retail sectors 18 2.2 Booksellers, stationers and newsagents 19 2.2.1 Sector definition 1 9 2 . 2 . 2 Trade structure and major players 19 2.2.3 Sector trends and issues 19 2.2.4 Sector performance 21 2.2.5 Comparative performance 21 2.2.6' Future prospects 21 2.3 Large mixed retailers 22 2.3.1 Sector definition 22 2 . 3 . 2 Trade structure and major players 22 2 . 3 . 3 Sector trends and issues 23 2.3.4 Sector performance 24 2.3.5 Comparative performance 24 2.3.6 Future prospects 25 2.4 Grocery retail multiples 25 2.4.1 sector definition 25 2.4.2 Trade structure and major players 25 2.4.3 Sector trends and issues 26 2.4.4 Sector performance 27 2.4.5 Comparative performance 28 2.4.6 Future prospects 28 CHAPTER THREE: METHODOLOGY ............................. 32 3.1 Large companies definition 33 3.2 Chosen sectors 33 3.3 Chosen survey methodology 33 3.4 Case studies 34 3.5 Questionnaire 36 3.5.1 Piloting 37 3.5.2 Distribution 38 3.5.3 Response rate 38 CHAPTER FOUR: CASE STUDY. MANAGEMENT HORIZONS ........... 42 RETAIL INFORMATION SERVICE 4. 1 The company 42 4.2 The retail information service 42 4.3 Case study results 43 4.3.1 Retail information service users 44 4.3.2 Impact of key trends and developments in retailing, on information needs 46 4.3.2.1 Retail internationalisation and the opening of the Single European Market 46 4.3.2.2 Green consumerism 47 4.3.2.3 The economic situation 48 4.3.3 Changing information needs 49 4.4 Summary of case study findings 50 CHAPTER FIVE: CASE STUDY, LARGE MIXED RETAILER, ......... 54 JOHN LEWIS PARTNERSHIP PLC, BUSINESS INFORMATION SERVICE 5.1 The company 54 5.2 Case study results 55 5.2.1 Information provision 55 5.2.2 Changing information needs 58 , 5.2.3 Impact of key trends and developments in retailing, on company information needs 60 5.2.3.1 Retail internationalisation and the opening of the Single European Market 60 5.2.3.2 Green consumerism 62 5.2.3.3 The economic situation 63 5.2.4 Information supply 64 5.2.4.1 In-house information supply 64 5.2.4.2 Use of external information providers 65 5.2.4.3 Nature of information supply in-house 67 5.2.4.4 Gaps in business information products 69 5.2.5 Additional comments 69 5.3 Summary of mixed retailer survey 70 CHAPTER SIX: CASE STUDY, BOOKSELLER, STATIONER AND ..... 75 NEWSAGENT, W H SMITH PLC, LIBRARY AND INFORMATION SERVICE 6.1 The company 75 6.2 Case study results 76 6.2.1 Information provision 76 6.2.2 Changing information needs 78 6.2.3 Impact of key trends and developments in retailing, on company information needs 80 6.2.3.1 Retail internationalisation and the opening of the Single European Market 80 6.2.3.2 Green consumerism 82 6.2.3.3 The economic situation 82 6.2.4 Information supply 83 6.2.4.1 In-house information supply 84 6.2.4.2 Use of external information providers 84 6.2.4.3 Nature of information supply in-house 85 6.2.4.4 Gaps in business information products 86 6.2.5 Additional comments 87 6.3 Summary of bookseller, stationer and newsagent survey 87 CONCLUSION .............................................. 92 BIBLIOGRAPHY ............................................ 97 APPENDIX ONE: GLOSSARY APPENDIX TWO: QUESTIONNAIRE INTRODUCTION Retailing in the UK is undergoing a period of structural, organisational and technical change. Indeed, for any newcomer to retailing research, the most striking testimony to this phenomenon is illustrated in each and every documented source relating to the industry. Regardless of author or ·document format, statements such as: In the last twenty or thirty years, British retailing has undergone major changes in both its commercial and economic organisation and its geographic character(l) and The industry has undergone the kind of transformation that only major growth or major decline brings to a whole sector of the economy,(2) bear witness to the dramatic changes which have, and are still, taking place. Retail analysts not only look to·the recent past as a source of change, stating: The growth and restructuring of the retail industry in the 1980's has been a significant economic event, (3) but, they also look to the future to confirm that the retail revolution is far from reaching an end, "retailers in the 1990's face a minefield of change"(4). For the last twenty-five years, UK retailers have relied heavily on sustained growth for survival and expansion, but, issues such as market saturation, the erosion of national borders and radically changing consumer expectations have put an end to this success factor. It is clear from the literature, that in order to maintain market share and survive into the next century, retailers need to adapt to their changing environment and adopt a flexible approach to the service that they provide. Competi tion is no longer based 1 solely in the home market but has become global. Also, demand is increasing more and more for new concepts and new technology to help companies gain an edge over competitors. Business information has a crucial role to play in this period of rapid change. This is not to say that business information was not important in the past, but as O'Brien and Harris write, more than ever before success in retailing depends on up-to-date information. CS) Ford confirms this prognosis, stating The business of retailing in the 1990's will increasingly be one of information and licensing.(6) Information required by retailers can range from land availability for new store development, consumer attitudes and behaviour to general economic data and the monitoring of competitor strategy. It is clear that an adequate supply of information may give a company an operating advantage over competitors who do not place a high value on information, as Kennington writes, A company that is aware of and able to use information is more likely to be profitable and expanding rather than the reverse.(7) 0.1 DEFINITION OF TERMS For the purposes of this study, retailing is defined as: An economic system for distributing the products and services of industries to meet consumer wants, needs and desires in a context of scarcity. CB) 2 An information need is defined as: A phenomenon occurring when a company realises that a gap exists in existing knowledge. Information supply is defined as: A method of information provision which satisfies a gap in existing knowledge. Business information is defined by Kennington as: That information required by a commercial firm which assists it to carry out its business.(9) A more comprehensive definition of business information is given by Haythornthwaite as: ... the published data, facts and statistics needed for decision-making in business organisations, private or public, as well as government.
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