UK retail sector during financial crisis Dissertation

UK retail sector during financial crisis - Dissertation Example The data are used in an extensive review of literature and as comprehensive resources that informed the analysis and the discussion of the study. While the findings are not definitive, this study's investigation was able to provide suggestive details supporting the positive relationship between the UK protectionist measures and the performance or the survival of the retail sector after the crisis struck British shores. The impact of the financial crisis especially on the future developments and trends in the UK retail sector was also identified. This was based on the expected response on the part of the policy networks and the industry decision makers. Several problems were also cited both on the part of the government and its policies; and, on the side of the retail industry. The study was able to propose possible solutions and modifications to existing policy attitudes towards the retail sector based on t he lessons learned from the financial crisis experience. INTRODUCTION The ret ail sector is an important component of the United Kingdom’s economy. A prominent part of the industry is the British Petroleum, ranked second in the European continent and the biggest industrial incorporation in the UK. The sector also include the vibrant mechanical engineering and manufacturing sectors, which are both important in the British export output (Hiles, 2010, p.39-46) Then, there is the financial institutions such as investment firms and the banking institutions, which serves one-tent of the global financial requirements. The aggregate turnover of the entire retail sector accounts for a significant portion of the country’s gross domestic product (GDP). The sector ranks fourth in the global trade market. It is a leading player in the European Union and that it is one of the largest industries in the whole of Britain. It is not surprising, hence, when the British government provides it with special protective measures because any instability can result to a crippling effect to the entire economy (HM Treasury, 2009, p.23-25). This is particularly highlighted during the series of financial crises that hit the world in the past decade. For instance, when the 2008 financial crisis that originated in America spilled over across the globe, the British consumption experienced some disturbance. The retail sector was hit as the economy immediately contracted by 0.5 percent (UK Parliament, 2009, p.139). The consumer attitude and purchase behavior showed signs of dampening, which can affect the sector in the next few years or so. In a recent survey by Data Monitor, it was found that 90 percent of the British consumers believe that the country is in recession and that 47 percent reported a worsening of personal financial situation (Market Watch, 2009, p.73). The report found that majority of the consumers is in the process of making changes to their lives and purchasing behavior and that previous purchasing patterns can only be maintained