Tesco: Register Change and Brexit Leave

Due to the recent vote made by millions across the country which resulted in the UK leaving the EU; it has had a massive impact on the economy and the price of sterling, this has had a multiplier effect on every big organisation including the worlds largest supermarket Tesco. Tesco has 6,902 shops worldwide and transacts around 78 million shopping trips per week so it's clear that any effect on their business will affect a lot of people worldwide and especially in the UK.
This article states "the consequent higher prices are expected to damp shoppers’ spirits.", this will effect the relationship between the business and customers and will most likely result in Tesco loosing sales and declining their profits which are currently high at "£994m group operating profit before exceptional items"; as customers will simply not want to pay these prices when their is so much competition out their offering better deals.

As a student I have to budget my money to be able to live and will always go for the cheapest option, I do regularly shop at Tesco but now I may have to go elsewhere if Tesco have to increase their prices to help maintain their profits as I simply wont be able to afford it. This has had a big impact on me as I will now have to travel a further distance to do my shopping with the budget I allow myself or if I want to carry on shopping at Tesco's reduce the amount of 'Tesco Finest' items I buy which is their better quality food, and stick to their own basics brand 'Tesco Value'.

As an economical factor, the result in Brexit will have effected the costs of Tesco. The UK was a free market throughout the EU to import and transfer goods so this will be why their prices are increasing as they will still need to maintain the current profits they're making with now more costs to pay so the only way to do this is increase prices to raise more capital.

As a conclusion I believe Tesco will lose customers and their sales will decline as people simply wont  pay these higher prices if they can go to Tesco's competitors and get products cheaper such as the supermarket of the year Lidl. Unfortunately the Brexit decision to leave the EU has had a multiplier effect which has turned negative for Tesco.

I have attached a fishbone diagram to this blog (Next Page) as it helped me explain in more detail the cause and effect that Brexit has impacted on Tesco. I learnt this in a recent lecture and found it was a great way to explore ideas so I applied this model to this case.