Retail Theory and Practice

RETAIL THEORY
AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Introduction to the company........................................................................................................4
Key relevant changes within the UK fashion retail.....................................................................5
Changes within the micro environment.......................................................................................7
Discuss the Strategies and tactics that could be used .................................................................8
RECOMMENDATION...................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Retail refers to the process of selling products and services to their respective customers
through their various channels of distribution which helps in earning profit and also they helps in
satisfying the demand which is identified through supply chain. The term retail is derived from
the French word Retailer. Retailers purchase in large quantity from the manufacturer and divide
the bulk in small quantity and then sell those products and services as per the demand and need
of customers (Ko, Phau, I. and Aiello, 2016). Retail marketing is an application of the marketing
functions in order to distribute the goods and services to their respective customers. Retail
industry includes many activities such as packaging, promotion, advertisements and showing the
variety of goods and products at a very reasonable price. Their purpose is to deliver the products
to their potential customers which can result in the customer satisfaction. The market share of
UK fashion industry is 7% and market value is approximately 66 billion pounds and currently
555,000 people are employed in fashion and retail industry (UK fashion industry statistics,
2019). moreover, there are top companies which are based on the market capitalization are
Burberry 10 billion dollar, Next 7.16 billion and Marks & Spencer 6.18 billion. This report is
going to focus on the various key elements of external and internal environment that influences
the company and also suggest some strategies and tactics by using various theories and
recommendations in order to overcome those barriers.
MAIN BODY
Introduction to the company
Marks & Spencer is the major British multinational retailer, headquarter in Westminster,
London. Company deals in the selling good quality clothing, home products and food products
and it is also listed on the London Stock Exchange. Company was founded in 1884 and currently
it has approximately 959 stores across UK and it includes 615 in food products. Marks &
Spencer was founded by two partners named Michael Marks and Thomas Spencer. Moreover,
they made their reputation in the early 20th century with the policy of selling British-made goods.
Furthermore, company has expanded into Canada in 1973 and had around 47 stores. Its profit
peaked in the financial year 1997-1998 and at that time company seen a continuous success story
(Company Archive, 2019). Furthermore, in 2006 company introduced a marketing campaign in
order to increase its sales and for this their slogan is “Look behind the label”. Its purpose is to