Retail Theory and Practice

This document discusses the retail and fashion industry, focusing on the major changes in the fashion market. It explores the tools and techniques used by River Island, a high street fashion brand, and provides recommendations for growth and expansion. Find study material and solved assignments on Desklib.

Retail Theory and
Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
The retail and fashion industry...............................................................................................3
Introduction to the chosen company.......................................................................................3
The major changes in the fashion market...............................................................................4
The modification in the macro-environment..........................................................................6
Explain the different tools and techniques in the context of River island .............................7
RECOMMENDATION...................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.................................................................................................................10

INTRODUCTION
Retail is mainly the platform of making sales and services of daily use of product used by
the consumers with different channels of distribution with the purpose of making revenue and
larger market share. In today business world it is essential for the company to fulfil the needs and
wants of the customers in effective manner (Jung 2019). This report is based on River island
which is an high street fashion brand which was founded in 1948 by Bernard lewis. This
organization has it headquarters located in London. This report is done on the basis of change
happen in the retail outlet. Also, it takes into account the problems faced by company along with
the strategies used to bring changes within the firm.
TASK 1
The retail and fashion industry
The term retail is mainly described as the process of providing the better services to the
consumers which mainly assists in small orders. Modern retail entities take various kind of firm
and entity take place in the larger context to provide services to the larger people. Along with
this retail outlets needs planning and determination in order to provide better services to the
consumers. The retail outlet which is taken in this report is River island as it is an Irish retail
fashion brand.
For the fashion segment are the which help the individual to provide services to the
consumer effectively. Along with this they provide the quality as well and effective services to
the customer in a well define manner. Along with this the retail outlet describes the tool and
method for the providing better services to the consumers with the help of effective channel of
distribution (Al Khoury, Thrassou and Papasolomou, 2019).
Introduction to the chosen company
River island is an high street fashion brand which operates in the different countries. The
company was step up by Bernard Lewis and his brothers in London, River Island is a private
company owned by the Lewis family. It was establish in the year 1948 and its headquarters is
located in London. The company have variety of products which deals in women, men and
children clothing, footwear and accessories. River Island has over 350 stores in the UK, Ireland,
Asia, the Middle East and Europe alongside 6 online websites that operates in 4 currencies,
which ships to over 100 countries worldwide.

Along with the big fashion brand such Zara and H&M the firm mainly contribute to the fast
changing fashion trends. Along with this, company mainly try to offer better quality product at
the affordable price so that people can avail the services in a well define manner. This in the
result deals became the fast retail chain the business of the similar industry. The company took
an initiative to adapt effective marketing strategy to spread their business across the globe in an
innovative or creative style.
The major changes in the fashion market
The retail business is consider is very old and it is the process of generating awareness
and promote the goods and services present in the market. The main objective of this business is
to great sales in a well define manner. There are key changes which are done in the fashion
clothing market which are explained down below:
1950’s Manufacturer is king: In the early 1950, the manufacturers of the product and
service were the only producers as there were less competition present in the market. They were
consider as the king. At this stage the demand and needs of the customers were less so firm offer
limited services to the consumers (Caro, Kök and Albéniz, 2019).
1960’s Consumer is king: This era the taste as well preferences were include in order to
provide better services to the customers. Along with this, demand and need were developed in
this era.
1970’s trade is king: this decade trade become the essential part of the business and
manufacturing were done on the larger scales and organisation were selling their product and
services to the consumers.
1980’s marketing emphasis: The company start to begin the emphasis on the marketing
as to make aware the consumers about the product. The main purpose of the company was to
enhance the productivity as well as sales of the company.
New distribution channels: Organisation started to use different kinds of distribution
channels to offer product and services to the consumers. There were various kind of distribution
channels such as intermediaries, dual distribution and supply chain or by using internet and
websites. With the help of technology the company use to trade at international boundaries with
the motive to expand the business in a well define manner.
PESTEL Analysis

This is known as the essential tool for monitor and analyse the macro-environment
effectively . This analyses is used by the different firm for making quality strategies as well as
plan which help in providing better services to the consumers (Härting 2019). In the context of
River island the firm use to this analyses in order to understand the external environment and
make decision for expansion and growth. Here is the impact of River island overall performance,
it imply PESTLE analysis which is described below:
Political Factor: These are the factor which are concerned with the two components
such as government policies and decision making. There are various elements which are involve
in the making decision such as tax policy, interest rate, labour law etc. In the case of River island
the company management offer the better services by looking after all the political factor and
ensure to provide quality outcomes. The stability in the politics help River island in growth as
well as investment to help them in making larger profit (Cleophas and et.al., 2019).
Economic Factor: This mainly include the economic performance such income of the
people and economic growth, inflation rate, exchange rates etc. They are the important factor
which help in providing the ability to purchase goods and services. For the organisation like
River island the company have better opportunities to offer the services as the economic
condition of UK is stable and have firm can make better revenue in the limited time period.
The economic issues have to look by the River island management for smooth expansion. The
firm should avoid investment in the recession to reduce the risk of loss.
Social Factor: This factor is concerned about social and culture changes in the particular
region. Hence this is essential for the River island to do proper research before entering in the
new market as people comes with different background. This will help firm to analyse the market
in depth and provide better services to the consumers. The social factor effect the River Island as
customers changes the lifestyle, carriers and attitudes. So company should focus on changing
trends in order to capture market.
Technological Factor: The technology have changed in the recent years which have
changed the face of the organisation in doing business. Technology became one of the biggest
opportunity for River island to provide better services to the consumers. This factor help to
capture large market share effectively (Härting and et.al ., 2019).
Environmental Factor: This factor help in preventing the environment by adapting eco
friendly product. As the consumer have become more eco friendly as so in this case the

organisation should produce quality for the consumers. In the case of River island the firm have
to offer environment friendly product which help in creating goodwill and brand image in the
market.
Legal Factor: This factor consist of government policies, regulation etc. for the benefit
of country economy as well as company's expansion. So River island must follow all the rules
and regulation so organisation can run smoothly. The company like River island the company
should avoid unethical practises which help in avoiding the brand image in the minds of the
consumers.
The modification in the macro-environment
Micro environment are the components which occur in the surrounding as they are
essential elements for maintaining the peace and harmony in the company. The effectively micro
strategies help organisation to provide better services to the consumers. There are different
elements which include in the micro environment such as SWOT which help in defining the
strength and weaknesses of the company (Jung, Kwon and Yu, 2019). So for the organisation
like River island it essential for the management to take SWOT analyses under the consideration
in order to make effectively strategies for the better of the organisation. Here is the analyses
which are explained in the detail manner.
Strengths Weaknesses
 The company have around 350 stores in
the different region of the country as
the also provide different job offer to
the people (Cleophas 2019) . The River
island is having skilled and talented
manpower who impose novel ideas or
thoughts for the enhancement of
company's productivity.
 They use effective marketing strategies
in order to attract more and more
customer's. As they keep there price
low which make it affordable for many
 The major weaknesses of the River
island is that despite having the ethical
practises in use the company have
negative response of doing their
operations activities.
 The River island has been in the picture
for using child labour there are various
complaint from there employees
regarding the poor working condition.
 Another weakness is that company is
not advertising so the competitors have
the advantage over the.

people to purchase the product .
 The company main strength that they
use ethical trading initiative which help
in developing brand image and
goodwill in the market.
Opportunities Threats
 There is vast scope for the company
and the firm has open new store in the
UK as people are buying products.
 The organisation can expand there
business in the different countries
where there is large opportunities to
expand and grow.
 Along with this River island can offer
different services apart from the retail
outlet which help them to expand and
grow at effectively (Kumar and
Venkatesan, 2019).
 The major threat to company are the
rivals present in the market. As there
are other brand such as Zara,
TOPMAN, House of Fraser, ASOS
which offer better services to the
customers.
 Another threat is quality and services
which are offered by the company. So
to avoid the threat the firm have to use
effectively strategies in order to reduce
the threat in a well define manner.
 For the organisation like River island
the company need to analyse the
different factor which help in making
modi faction for the betterment of the
organisation which help the company to
make quality decision to avoid theft.
Explain the different tools and techniques in the context of River island
There are different challenges and problems which are faced by the company so in the
case the firm have to make different strategies which help them to make quality decision which
help them grow and expand the business effectively. For example, in past time, Brexit create
uncertainty or issues for this industry and affect the business of River island and almost every
company. So it become essential for the company to have plans and blueprints in order to make

effective policies which help organisation to avail affordable product to the end users. Here are
some theories which are useful for the company to make strategies are explained down below:
Wheel of Retailing
This is the kind of theory which are useful for the company to understand the different
changes which take place in the business world. Along with this it help in providing better
services to the consumers as well as assist the firm to make efficacious plan to compete with the
rivals. There are four steps within this model, they are as following:
Establishing and penetrating in the market: This is the step in which it pays attention to
the new retailers who new in the market. They mainly enter with offering low price product and
services with low margin (Lee and et.al; 2019).
Expanding in the market: These are the method which help the firm the expand and
grow in the business in order to make profit. For the organisation like River island the marketing
manager of the company must make sure that firm expand the business by opening different
stores over the country.
Stabilized business model attracting margins: In this case the firm is focus on making
brand image by using high pricing strategies effectively.
Entry of another retail competitor: This is consider as the last step of this theory which
there are different retail enterprise which enter in the market.
Conflict theory
This theory illustrate the sociology and social philosophy which emphasise the
interpretation of the people. Conflict theory help in providing the insight of social and political
implication based upon the individual. Along with this it assist in to understand the competition
strategies and the structural inequality in the society. For the organisation like River island it is
essential for the firm to implement the conflict theory as it is consider as the useful method for
figure out the conflict as well as chaos present in the market. There are high chances of conflict
within the organisation so this theory will provide solution for the company to avoid these kind
of uncertainty (Paderna and et.al., 2020).
RECOMMENDATION
Recommendations for River island are as following:
 The company can use advance technological method for their distribution channel which
increase the sales as wells as profit margins of the company (Al Khoury 2019). Along

with this company can use effectively method such providing training to the employees
which help in increasing the productivity of the company.
 Firm can make website and online shopping application and software which attract more
and more customers towards the company. Beside this company can offer discount and
offers on the different occasions as for making larger customer's base in the limited time
period.
 River island must use advertising strategies as there are less spending on the promotion ,
so in this case consumer are not well aware about the product and its services. So in this
case the company must hire creative marketing team which help in promoting the product
and services in a well define manner.
 This is recommended to the company to adopt effectively pricing strategies which help
the organisation in doing market penetration. Along with this company must provide
better quality services to the consumer as it help in building brand image in the minds of
the customers.
 Improve the customer's services as this has become essential elements for the company
like River island. Now a days consumer have become more brand as well as quality
specific so in order to gain the attention of the customer the company have to provide
better services .
CONCLUSION
It has been analysed from the above mentioned report that, retail store are providing
betters services to the consumers effectively . Beside this, Pestle analyses has been conducted for
the macro-environment so that organisation can provide better services. The SWOT analysis has
been conducted to understand the strength as well as weakness of the retail industry. There are
different theory which are used to provide the guidance to the management of the company to
avoid mismanagement. Al last recommendation is also provided for the improvement of the
company.

REFERENCES
Books and Journals
Al Khoury, G., Thrassou, A. and Papasolomou, I., 2019. Emotional Intelligence Towards
Customer Relationship Marketing: The Case of Retail Banking in Lebanon.
In Handbook of Research on Contemporary Consumerism (pp. 263-284). IGI Global.
Caro, F., Kök, A. G. and Martínez-de-Albéniz, V., 2019. The Future of Retail
Operations. Manufacturing & Service Operations Management.
Cleophas, C and et.al., 2019. Collaborative urban transportation: Recent advances in theory and
practice. European Journal of Operational Research. 273(3). pp.801-816.
Härting, R and et.al ., 2019. Potentials of Digital Business Models in the retail industry–
Empirical Results from European Experts. Procedia Computer Science. 159. pp.1053-
1062.
Jung, H., Kwon, K. M. and Yu, G. J., 2019. Fuels sales through retail chains and their store
traffics and revenue. Asia Pacific Journal of Marketing and Logistics. 31(1). pp.2-13.
Kumar, V. and Venkatesan, R., 2019. Journal of Retailing Special Issue-Metrics and Analytics in
Retailing. Journal of Retailing. 95. p.1.
Lee, Z. W and et.al., 2019. Customer engagement through omnichannel retailing: The effects of
channel integration quality. Industrial Marketing Management. 77. pp.90-101.
Paderna, R. D and et.al., 2020. Improving Employee Experience in a Medium-sized Retail
Chain through Quality Human Resource Management Practices: Does Bifurcation Bias
in Family Firms Moderate the Nexus?. Review of Integrative Business and Economics
Research. 9. pp.62-79.
Piotrowicz, W. and Cuthbertson, R., 2019. Exploring omnichannel retailing: Common
expectations and diverse reality. In Exploring Omnichannel Retailing (pp. 1-10).
Springer, Cham.
Rao, S. S., 2019. Engineering optimization: theory and practice. John Wiley & Sons.
Roggeveen, A. L and et.al., 2019. Journal of Retailing: New Initiatives and News
Updates. Journal of Retailing. 95(1). pp.1-2.
Sarkar, A., Sarkar, J. G. and Bhatt, G., 2019. Store love in single brand retailing: the roles of
relevant moderators. Marketing Intelligence & Planning. 37(2). pp.168-181.
Shahzad, F., 2019. An Analysis of Internationalization Theories and Behavior of Finnish Retail
SMEs in Russia. In Handbook of Research on Entrepreneurship, Innovation, and
Internationalization (pp. 490-520). IGI Global.