Impact of Covid-19 on Marks & Spencer in the Retail Sector

MANAGEMENT
REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
BACKGROUND.............................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................6
FINDINGS.......................................................................................................................................7
Critical evaluation of issues.......................................................................................................16
RECOMMENDATIONS...............................................................................................................19
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22
APPENDIX....................................................................................................................................24
Questionnaire.............................................................................................................................24

INTRODUCTION
Covid-19 has created pandemic situation for the world from past few months and has
impacted all type business sectors such as hospitality, travel and tourism, food, clothing,
pharmaceutical and retail sector negatively. However, retail sector is highly affected from Covid-
19 pandemic because they unable to retail it’s product to the customer. There are various
multinational companies which offers it’s product across the world due to this cannot sell their
services. Supply chain management and logistic chain management are backbone of the retail
sector because they support to provide product availability from retail company to customers.
There are various digital media that are using by retail companies to sell their product but
lockdown has reductant all strategies of retail companies. Most of the country’s government have
announced and imposed lockdown in order to preventing corona virus spreading and strictly
aware people’s not to go out from their houses. It has brought huge financial loss in MNC’s
because they are not able to sell it’s product at domestic and global level (Kharoubi and Dolle,
2020). Covid-19 is not only harm physically but also mentally. There is an example to
understand such as a retail company that operates it’s at domestic level and global level through
it’s stores wherein employ wide number of employees to offer product services to the customer.
Due to covid-19 most of the employee avoid to go on physical stores to think that they can
infected by corona virus as resulted brings poor productivity of employees in the workplace.
Such consequences have impacted whole year revenue of the companies. This research project
will provide understanding about challenges or issues that are faced by Marks & Spencer in retail
sector due to Covid-19.
This research will supportive all companies which operates their business in retail sector
because it will include all actual facts that are facing by retail companies currently. It also
highlighted several issues that arising by covid-19. This pandemic is not only impacted UK’s
market but also whole world’s retail market. There are numerous retail companies which are
fully dependent on logistic and supply chain management but due to lockdown they are facing
heavy financial loss whereas this research project will support such company to deal with in such
consequences. With this research project individuals retail company is not only finds solution of
identified challenges but also will be mentally prepared to take advantage over such situation in

future effectively (Authority, 2018). There is a reason to choose this topic for research purpose
such as it is one of the most economic stimulant business sectors among others and essential for
human needs. But currently this sector is facing various challenges to operate their business. In
the research project will pick all authentic and realistic sources related to research topic by the
support of effective data colleting tools which will maintain quality of all collected information
so that logical conclusion can draw. Overall, this research will become source of solution for the
retail sector in recent time as well as future perspective. This research project will include aims
and objectives of the Marks & Spencer.
BACKGROUND
It has evident that Covid-19 pandemic is bringing huge jeopardise for the retail sector in
UK which was enormously susceptible for it’s future positioning after Brexit interference. Retail
industry gives huge contribution in stimulating overall GDP rate such as around 5%. But
extensive rules of social distancing are cancelling all major events like marketing campaign etc.
in order to influence customer to buy product, lockdown economy etc. are ultimately affecting
entire retail industry. It has evident that particular retail sector is facing issues of the pandemic
whereas most of the small-scale business ventures have closed their businesses while
multinational companies are struggling with most cruel brunt due to social distancing and
lockdown rules. So, it is required to analyse that how Covid-19 has impacted selling revenue in
the retail sector and what are issues or challenges which are facing by retail industry (COVID-
19: How retailers can overcome the challenges of a pandemic, 2020). In this research will
clearly highlighted probable solution of determined challenges and those can be implemented by
retail companies in order to reducing negative impact and keep going their business in the retail
sector for prolong time. Marks & Spencer Group plc is a British multinational retailer company
which is headquartered in London, England, UK. it is operated in more than 1463 location
through it’s conventional stores. Around 80,000 employees offer their services in the company.
It posses’ wide product categories such as clothing, home and food product and sell to customer
among customers across the world. It also has wide brand portfolio and offers product services to
the customer. It offers product services across the world through their subsidiaries but most of
the countries have imposed lockdown in order to break chain of spread disease. Due to this it
unable to sell it’s products which has brought heavy loss in company. However, it has faced huge

loss during Brexit as well because it has to change their product and policies according to
government norms and it unable to trade its product into multiple country due to trade restriction.
Shares price of Marks & Spencer has suspended in 2019.
Figure 1: M&S SHARES PRICE
Source: (M&S drops out of FTSE 100 after shares)
So, management of M&S has framed objectives to deal with current and post situation
such as “to evaluate impact of Covid-19 on selling scale in the retail sector”, “to determine
overall impact that this Covid-19 pandemic has led on Marks & Spencer in particular”, “to
analyse various challenges that the decrease sales will exist” and “to create strategic solutions
based on the determined challenges”.
Aim
“To analyse several negative impacts on retail sector of the UK after glocal Covid-19
pandemic. A case study on Marks & Spencer.”
Research Question
 How the retail sector in UK has been impacted by the COVID-19?
 What is the effect of this pandemic on sales of Marks & Spencer?

 What are the challenges that arises in retail company due to decline sales?
Significance
This research topic has been elected extensive details over the different aspects which are
affiliated with the impact that global Covid-19 pandemic. Due to this it will have and having on
the entire retail industry. So, it is essential to evaluate all negative impact and problems which
are experiencing by retail companies in declining of sales. However, this research will support
in determining that what are the factors that related with reduction in sales of the retail
companies particularly. This research will support to understand impact of global pandemic
which has developed from past few months and how these will impact in future as well, so it is
essential to conduct research on this topic. This research will become as representative of the all
issues and challenges that will be struggled by the MNC’s and small-scale companies in the
UK’s retail sector especially (5 Challenges the new Retail post Covid-19 needs to overcome,
2020). However, this research is not only proposed by scholar and others researchers but also
involves managers of the company who already have been running their companies in the UK’s
retail sector.
RESEARCH METHODOLOGY
 Research Type: It is a well-organized process of searching new information, idea and
thoughts that assist in increasing potential of the company. Qualitative and quantitative
method are two major methods of research type which helps business in collecting
quality information related research topic with accuracy precisely. Qualitative method
supports to maintain quality while gathering data. on the other hand, quantitative method
provides information in numerical figure which is bit harder for all people to understand
effectively. Qualitative method will use for this research because it is necessary to collect
realistic data then logical conclusion can be portrayed of entire research. With this
method will collect overall data related to Marks & Spencer current scenario because in
recent time company has faced heavy loss in it’s business due to COVID-19 pandemic.
 Research Philosophy: It is basically dependent on theories that helps in collecting data in
precise manner. It contains two type philosophies such as positivism and interpretivism
whereas interpretivism philosophy explore reality of the business environment and