Retails industries in UK Dissertation Example | Topics and Well Written Essays - 5250 words

Retails industries in UK - Dissertation Example Research shows that when the economic aspects of the country were steady and reliable, the consumer confidence was at its highest. This is evident from the fact that before 2007, when employment levels and positive externalities prevailed in the economy, UK consumers spent lavishly. However, growing inflation forced British people to change their money management philosophy from earn more and spend lavishly to spend less and save more. Everything is expensive in UK at present except the people. Many of the British families are currently struggling to find enough funds for managing their monthly family expenses because of higher inflation. From September 2007 onwards, a strong decline in consumer spending has been observed. Moreover, consumers started to stay away from borrowing options available to them from 2007 onwards. Earlier, the general trend among British people was to spend lavishly and approach the banks or other financial institutions when they are in need of money. Banks a nd other financial institutions in the past, dispersed mortgages to all people who approached them irrespective of their financial abilities or the credit histories of the borrowers. As a result of such inappropriate lending policies, many British banks faced problems in the recent past. At present banks in Britain are granting loans or mortgages only after thoroughly investigating about the credit histories of the borrowers. Thus, people are struggling to find enough money for lavish spending at present. ... This literature review focuses on the retail industries in the UK, specially the segmentation in this sector, as well as how the financial crisis affected it. Basic Trends in Retail Sector of the UK Lower Consumer Confidence: Research shows that when the economic aspects of the country were steady and reliable, the consumer confidence was at its highest. This is evident from the fact that before 2007, when employment levels and positive externalities prevailed in the economy, UK consumers spent lavishly. However, growing inflation forced British people to change their money management philosophy from earn more and spend lavishly to spend less and save more. Everything is expensive in UK at present except the people. Many of the British families are currently struggling to find enough funds for managing their monthly family expenses because of higher inflation. From September 2007 onwards, a strong decline in consumer spending has been observed. Moreover, consumers started to stay awa y from borrowing options available to them from 2007 onwards. Earlier, the general trend among British people was to spend lavishly and approach the banks or other financial institutions when they are in need of money. Banks and other financial institutions in the past, dispersed mortgages to all people who approached them irrespective of their financial abilities or the credit histories of the borrowers. As a result of such inappropriate lending policies, many British banks faced problems in the recent past. At present banks in Britain are granting loans or mortgages only after thoroughly investigating about the credit histories of the borrowers. Thus, people are struggling to find enough money for lavish spending at present. Apart from the