Retail Industry Trends with Prominent Research

This article discusses the current trends in the retail industry, focusing on the impact of technology, social media, and customer preferences. It includes a PESTLE analysis and SWOT analysis of Next PLC, a British multinational retailer. Recommendations and an action plan are also provided for the company's growth and success.

INQUIRY PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................1
RETAIL TRENDS...........................................................................................................................1
Retail industry trends with prominent research...........................................................................1
ANALYSIS AND DISCUSSION...................................................................................................2
Background of company..............................................................................................................2
PESTLE Analysis........................................................................................................................3
SWOT Analysis...........................................................................................................................4
RECOMMENDATIONS.................................................................................................................5
Recommendations and action plan..............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
APPENDIX......................................................................................................................................9
Face to face interview..................................................................................................................9
Primary Research Questionnaire.................................................................................................9
Secondary Research.....................................................................................................................9

INTRODUCTION
Retail industry defines a process which is helpful in selling and purchasing of commodities to the
respective customers with the use of various channels of distribution in order to achieve
competitive edge and proficiency. Retailers are those individuals who satisfy the requirements
and demand of customers by providing them suitable commodities according to their use
(Kasemsap, 2018). It is related with the collection of different products from the manufacturer in
large quantity and also supplies it to their customers in small lots. Clothing industry is a group of
companies whose cycle start from manufacturer and ends on customer. To carry forward this
report company considered is next PLC which is the British multinational retailer deals in
clothing, footwear and home products and headquarters in Leicester, United Kingdom. Moreover
this report is going to cover current trends of Retail Industry with the help of prominent research
such as PESTLE and SWOT analysis. Lastly on the grounds of its weakness prominent
recommendations is provided with the help of action plan.
RETAIL TRENDS
Retail industry trends with prominent research
The Retail Industry has gone through which prominent transformation over the past decade
and also continues to evolve it so quick. By considering the advancements in digital channel and
other concerning things in Retail Industry, 2018 has been kind to retail in UK with the reporting
growth off market of every month that is far better than 2017. Over the face of market is rapidly
evolving and retailers need to adapt to new shifts in terns of demographics, attitudes and
preferences of customer (Siayah, Setiawan and Van Bee, 2019). For this the market will be
defined buy the advanced and emerging Technologies that has been changed is the way for the
interaction of customers with their respective brands and for this prominent Trends that will
shape in Retail Industry are discussed as underneath:
 Customers want non-stop access to commodities: In Modern era customers want excess
of production services according to their convenience. As it becomes possible with the
help of e-commerce and online shopping as here customers can access quotes at any time
and also place their order according to their convenience. Online shopping has many
benefits like easy return policy, cashback, easy exchange and so on. These moods are
considered as the “shoppable windows” in which customers can passes by the option to
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shop at all the hours straight from the window of Store with the help of touch screen and
mobile (PRAYOGI and YUANITA, 2018). In addition to this customers believe on the
reviews and ratings and on that basis they made their purchasing so show the feedback of
customers plays an important role for the retailers to become trendy in the market.
 Social shopping: Currently most of the retailers use social media is there communication
marketing tool in order to broadcast their new ideas and analysing the taste and
preferences of consumers. Now social media becomes a shop window in order to sell
products and the Smart Brands are taking full advantage of social media. It can become
easier to sell products on social media because of the support of customers as the take
snapshot and share it on other social media accounts (Ramnarain and Hlatswayo, 2018).
It is considered as just the pace of technological advancement and for this retailers need
to stay a in the dynamic and innovative environment in order to determine the changing
Expectations of their customers.
 Exclusivity: Modern customers want unique and innovative products as it give them new
experience towards company and make them feel special that entity value there
preferences and demands. For instance next PLC uses its prominent tools and machinery
in order to develop and manufacture their own products and offer good quality
commodities to their respective customers according to their requirements (Khalaf,
2018). Meanwhile some brands cannot afford to offer exclusive experience to their
customers and as in return they need to pay for it by decreasing there profitability and
proficiency. By considering the current trends many customers want exclusive unique
handcrafted products such as printed clothes that makes them feel good when the use it is
these products are considered under the tailored commodities.
ANALYSIS AND DISCUSSION
Background of company
Next PLC is the British multinational, footwear clothing and home product retailer has
approximately 700 stores from which around 500 are in United Kingdom and 200 are in Europe,
Asia and Middle East. Next PLC becomes the largest clothing retailer in terms of sales and also
overtaken Marks and Spencer in 2014.
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PESTLE Analysis
 Political: It describes the political factors which influence next PLC in current moment
and also those will impact it in next 5 years including interest rates, Corporation tax and
VAT. By considering the current situations Corporation tax is decided at 20% which
lower the attempt to stimulate the economic activity full stop for this next need to keep its
Eyes on the changes of Corporation tax as if it rises in the next five years the business
need to pay more money to government which describes that their outgoings will be
higher and profit gets lower (Yuliati, Riantoni and Mufti, 2018).
 Economical: It depicts many economic factors such as economic growth inflation rate
interest and employment as it put major impact on company because customers are
earning more when the economy is growing. The economic growth of UK is quite good
which depicts that they spend more on their business like next PLC as they have earning
more profit and sales. UK’s economy has grown and for this the sales of Next has
increases by 7.2% and profitability increases to around 12.5% at the end of period.
 Social: These factors influences the purchasing decisions of customers as it include taste
trends and demographic factors. In relation with this next PLC need to investigate more
on social and cultural factors that takes place in the environment asset have high impact
on the performance of business (Song and Wen, 2018). Moreover next PLC can use its
home delivery and online business modelfor its aging population which is convenient for
the customers and can become advantage for company.
 Technological: The Spectre rapidly growing the fashion retail sector with the prominent
use of online shopping, E-Commerce and technological marketing. In terms of online
shopping prominent development made by next PLC by opting this as it increases the
12% profitability in 2014. It also become convenient for company with the use of
Facebook, YouTube and Twitter as their promotional tools of production services for the
younger customers especially between the 16 to 34 age group.
 Legal: Like all other businesses next PLC also uses legal minimum standards that are
enforceable by the law (Thongkoo, Panjaburee and Daungcharone, 2019). For this
minimum wage legislation is used by next PLC with positively Influencers Company
with large number of its paid workers by deciding their minimum wage £6.19 per hour.
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 Environmental: It considers the physical environment which influences the business and
its functioning. In terms of next it operates in UK that highly suffers from natural
disasters like earthquakes hurricanes and forest fires and because of all this the
environment of UK gets influenced which negatively impact on the trading and exporting
of retail products. For this next can put many efforts for the environment such as
eliminating wastage, implementing ethical, Sourcing policies and running more efficient
transport operations.
SWOT Analysis
Strengths Weaknesses
 Next PLC has number of stores in
almost every country and it is
supported by their strong distribution
channel that ensures that its
commodities are easily available to
their customers at right time.
 Moreover the strong presents of next
PLC on social media is more beneficial
in terms of its sales and profitability as
its popular social platforms include
Facebook, Twitter, Instagram with high
level of customer engagement.
 Next PLC has low budget in terms of
its quality control department instead of
its competitors that leads the company
towards the lack of consistency and
develop the chances of damage of
quality across its various stores
(Efstathiou, Kyza and Georgiou, 2018).
 In addition to this company has higher
employee turnover rate as compared to
its rival and reason behind this is
company spent less on their employees
and does not provide any appreciation
to them.
Opportunities Threats
 By analysing the number of internet
users in all over the world it is
determined that their quantity gets
increase which can become an
opportunity for next PLC expand their
online presence with the help of
internet and becomes quite easy to
interact with their respective customers
 By considering the substitute products
these are increasing day by day which
can become threat for the company and
whole industry as well as the
consumption of existing products gets
decreases.
 Moreover the frequent changing taste
and demand of consumers put pressure
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(Cairns and Areepattamannil, 2019).
 Away with this, green government
drive also offer an opportunity for next
PLC in terms of sale of its products to
Central and state government
contractors.
on company to constantly change its
product in order to meet the
requirements of customers.
RECOMMENDATIONS
Recommendations and action plan
Retail Industry is considered as the most dynamic and driving industry in the world as it
combines the wide variety of activities from the production of products which transforms the
suitable materials and creation of articles to the clothing and shoes among others. With the
massive production of food and beverages clothing market and complementary productions are
in the ideal position to become one of the foremost profit generator then the business clothing.
By considering the above discussion for the improvement of productivity and profitability for the
retail industry and company named Next PLC should adopt prominent changes for the survival
of business. For this various recommendations are given as under:
 Next PLC should increase its online presence which is helpful in its expansion and it is
possible because of its technology which company uses in its offerings towards the
potential customers. In relation with this company need to offer its products according to
the convenience of its potential customers and also considering their needs and
preferences before developing their prominent products and services.
 It is also recommended to company that they need to follow all the current trends that
takes place in the business environment in order to make their position and sustain
themselves in market place which are coming in the retail industry as because of this they
tends to become the leader of market not only in UK but across the world.
Action Plan
By determining the current objectives of company in order to enhance the 15% of its market
presence and also share its commodities and in relation with this Next PLC need to take
prominent actions that are discussed as under:
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 Manufacturers of many countries apart from China need to put emphasis on diversifying
their material which they use in developing apparel, increasing the diversity of products
and also diversify the end markets which they export.
 Moreover, policies and strategies matters a lot in each stage of apparel for the global
value chain. In addition to this, to be in competitive environment, companies need to
work with their government in order to make sure the trade policies and develop relations
with other countries as well.
CONCLUSION
By considering the above information it is determined that retail industry is the one which
can easily modify itself according to the needs and preferences of its customers within its current
services and procedure. Thus, to sustain in the dynamic business environment and to give tough
competition to their rivals company need to develop number of strategies on the basis of its
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prominent research. Their research is helpful in order to deliver them best experience towards
their respective customers and higher rate of returns to shareholders.
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REFERENCES
Books and Journals
Cairns, D. and Areepattamannil, S., 2019. Exploring the relations of inquiry-based teaching to
science achievement and dispositions in 54 countries. Research in Science
Education. 49(1). pp.1-23.
Efstathiou, I., Kyza, E.A. and Georgiou, Y., 2018. An inquiry-based augmented reality mobile
learning approach to fostering primary school students’ historical reasoning in non-
formal settings. Interactive Learning Environments. 26(1). pp.22-41.
Kasemsap, K., 2018. The roles of corporate marketing strategies and brand management in the
global retail industry. In Digital Marketing and Consumer Engagement: Concepts,
Methodologies, Tools, and Applications. (pp. 294-325). IGI Global.
Khalaf, B.K., 2018. Traditional and Inquiry-Based Learning Pedagogy: A Systematic Critical
Review. International Journal of Instruction. 11(4). pp.545-564.
PRAYOGI, S. and YUANITA, L., 2018. Critical Inquiry Based Learning: A Model of Learning
to Promote Critical Thinking Among Prospective Teachers of Physic. Journal of Turkish
Science Education. 15(1). pp.43-56.
Ramnarain, U. and Hlatswayo, M., 2018. Teacher beliefs and attitudes about inquiry-based
learning in a rural school district in South Africa. South African Journal of
Education. 38(1).
Siayah, S., Setiawan, A.R. and Van Bee, J.L., 2019. The Impact of Inquiry Based Learning
Implementation In Indonesia to Secondary School Student’s Achievement.
Song, Y. and Wen, Y., 2018. Integrating various apps on BYOD (Bring Your Own Device) into
seamless inquiry-based learning to enhance primary students’ science learning. Journal
of Science Education and Technology. 27(2). pp.165-176.
Thongkoo, K., Panjaburee, P. and Daungcharone, K., 2019. A development of ubiquitous
learning support system based on an enhanced inquiry-based learning
approach. International Journal of Mobile Learning and Organisation. 13(2). pp.129-
151.
Yuliati, L., Riantoni, C. and Mufti, N., 2018. Problem Solving Skills on Direct Current
Electricity through Inquiry-Based Learning with PhET Simulations. International
Journal of Instruction. 11(4). pp.123-138.
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APPENDIX
Face to face interview Which product makes NEXT PLC more unique?
The quality of fabric, designs, availability of products and effective workforce makes
NEXT PLC more unique. As because of all these factors company can easily retain their
customers for longer period of time that is useful in enhancing the sales and revenues for
company. Does NEXT PLC promote their new products?
Yes, company use various attractive promotion tools which is useful in attracting the
attention of many people with the help of social media as it is the significant tool which is useful
in increasing sales and revenues of company. Why do people shop at NEXT PLC?
People shop at NEXT PLC because of its wide variety of product range and quality of
products that is useful sufficient enough to attract maximum number of customers. What is the impact of COVID-19 on NEXT PLC?
Due to the impact of COVID-19 the sales and profitability gets negatively impacted and
company face prominent crisis due to the impact of corona virus.
Primary Research Questionnaire
Q1. Does Next PLC offer good quality services? Frequency
a) Yes 40
b) No 10
Q2. Does Next PLC able to meet the requirements of its customers? Frequency
a) Yes 35
b) No 15
Q3. What quality of Next PLC you like the most? Frequency
a) Product range 10
b) Quality of service 20
c) After sales service 20
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Product range of NEXT PLC
10

Secondary Research
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