PESTLE Analysis for Opening a New Clothing Retail Store in the UK

This presentation provides a PESTLE analysis for opening a new clothing retail store in the United Kingdom, addressing political, economic, technological, social, legal, and environmental factors. It also includes a SWOT analysis and Porter's five force analysis.

Presentation

TABLE OF CONTENT
 Introduction
 PESTLE Analysis
 SWOT Analysis
 Porters five force Analysis
 Conclusion
 References

INTRODUCTION
Retail stores form an important component for the smooth
functioning of an economy. This is because they contribute
significantly to its overall development. Also, operating a
retail store provides a great opportunity for the customers
as they can experience various tangible products as well as
services. This report is based on opening a new clothing
retail store in United Kingdom. The retail store will serve
the needs of the customers by offering them latest trends in
fashion.

PESTLE ANALYSIS
The PESTLE Analysis explained as framework of the macro
environmental factors which are used in environmental
scanning component of the strategic management. It is mainly
conducted to address political, economic, technological, social,
legal and environmental issues which impacting United
Kingdom. This is one of the useful tool that assist the business
strategies to understand impact of macro environmental factors
on business.

A PESTLE analysis for the retail clothing
store is also conducted.
 Political factors
 Economical factors
 Social factors
 Technological factors
 Legal factors
 Environmental factors
CONTINUE

Cont...
Political Factors – The United Kingdom is one of the most powerful
countries in the world and is politically stable. The country has a proactive
government that supports new businesses. Political factors can affect the
respective retail clothing business, for example either by making the
environment in the market more or less friendly. Also, since the government
possesses a great power over the businesses, it can form new regulations and
legislations that can affect the business. Lastly, the political factors can also
affect the business's foreign trade regulations.

Cont...
Economic Factors – The United Kingdom has a strong economic
position in the world in comparison to other countries. The economy of
the country is diverse with both private as well as public sectors. The
various economic factors that can affect the respective clothing retail
store include employment factors, banking and inflation, consumer
behaviour etc.

Cont...
For example, if the consumer behaviour will keep on changing, the store will
have to keep switching and stocking different clothes. Also, if the cost of
the raw materials as well as various logistics services will increase, the
profitability of the clothing store will get affected. Lastly, the level of
income among the citizens will also affect the business as their buying
behaviour will change.

Cont...
Social Factors – The United Kingdom is one of the most populated
countries in the world. Also, the people living there have a high
standard of living, which means that there will be various factors that
will affect the overall business. For example, the taste as well as
preferences vary from customer to customer and thus, will affect the
business operations and its sales. Apart from this, social factors such as
income levels, purchasing behaviour etc. can affect the decision making
as well as deciding where to set up the clothing store. Lastly, the
attitude of the society towards goods and services can also impact the
business.

Cont...
Technological Factors – People living in the United Kingdom have expertise
in information technology. The country is technologically advanced along
with various laws and regulations that organizations are expected to follow.
These factors can have a significant impact on the operations of the retail
clothing store. For example, if the business implements the appropriate
technology, it will help in reducing the manual labour as well as ensure that
the customers get a memorable experience. Poor internet connectivity
within the store will leave a bad impression on the customers. By
implementing the technology, new employment opportunities will be
created for the people.

Cont...
Environmental Factors – Consumers are increasingly becoming aware as
well as conscious about the environment. They prefer using clothes that are
sustainable and would not cause any harm to the surrounding. Therefore,
these factors have to be kept in mind. For example, by introducing a fast
fashion section in the store, more people can be attracted. It will also show
that the business is concerned about the environment. Climate and weather
of the location where the store is being set up, will also be taken into
account because it can affect the overall sales and profitability of the
business.

Cont...
Legal Factors – There are various legal considerations that have to be taken
into account while operating a business in the United Kingdom. It is
important for the respective business to follow these rules so that it can
function in an effective manner. For example, if the business will not fulfil
the legal requirements, it will have to face consequences in respect to
overall sales as well as profitability of the business.

SWOT ANALYSIS
Strengths
 Retail clothing store has the proper
availability of resources to conducting
its business activities.
 This retail store has the well
experienced and talent staff that can
provide the better experience to
customers.
Weaknesses
 The retail store does not have the new
and advanced technology.
 It is dependent on the new fashion
brands.
Opportunities
 The clothing retail store can provide
its products and services online.
 For promotion purpose, it can use
different tools of social media such as
Facebook, Twitter, Instagram etc.
Threats
 Large number of competitors exist in
clothing sector.
 Quick change in fashion trends.

PORTERS 5 FORCE ANALYSIS
It is method for examining the competition of business. There
has been Porters 5 force analysis conducting of clothing
sector.
 Bargaining power of customers
 Bargaining power of suppliers
 Threat of substitute products
 Threat of new entrants
 Competitive Rivalry

CONCLUSION
It has been concluded from above mention report that PESTLE
analysis has been conducted for examine the external factors.
It is helpful for the new business for start. There has been
SWOT analysis conducted of the retail clothing store for
analysis the internal factors which can imp0act on business
function.

REFERENCES
Nandonde, F. A., 2019. A PESTLE analysis of international
retailing in the East African Community. Global Business and
Organizational Excellence. 38(4). pp.54-61.
Achinas, S. and et. al., 2019. A PESTLE Analysis of Biofuels
Energy Industry in Europe. Sustainability. 11(21). p.5981.
Christodoulou, A. and Cullinane, K., 2019. Identifying the Main
Opportunities and Challenges from the Implementation of a
Port Energy Management System: A SWOT/PESTLE
Analysis. Sustainability. 11(21). p.6046.

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