Retail Theory and Practice

Retail Theory and Practice

Table of Contents
INTRODUCTION...........................................................................................................................1
Introduction of retailer ....................................................................................................................1
Q1 Key relevant changes in UK fashion retail............................................................................2
Q2 Suggest strategies and tactics that could be used by company.............................................5
Conclusion ......................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Introduction of retailer
Retailer is a person or institution and it makes bridge between whole seller and customer. It
means that it purchase goods from whole seller and then sale to customers. So it provides service
to customers through fulfil their needs and provide satisfaction to them (Fozer, and et.al., 2017).
So it purchases large quantity of goods from whole seller and manufacturer and break in small
quantity then sell to customers. So H&M is a also a retail company and it sells fashion clothes. It
also promotes their product in affective manner and also deliver goods to customers. So it also
collects information from customer and then give information to manufacturer.
Introduction to the company:-
H&M is fashion retailer company and it provides fashion clothes to customers. It has 10000
stores and it served worldwide. It is very big brand so it provides men and women clothing and
children clothing as well. It provides product according to the latest trend and taste and choice of
customers. H&M has zero advertisement (Widya Yudha, Tjahjono, and Kolios.2018). As it has
very popularity and it offers 12000 new designs each year. It does business in different country
and on global level like Spain, Portugal, turkey, Morocco. Its marketing strategy is also very
systematic because it provides the latest clothes at reasonable price. It makes policy about well
research and it researches time to time so market and understand choice, taste and preference of
customers and produce according to customers choice. It also adopts and establish new
technology and innovations frequently for improve and develop their production.
H&M has effective, efficient and skilled workforce and it has improved their ideas for
improve fashion and it helps in attract customers for increase sale and profit. It also provides
incentive and reward to their employees for motivation and improve their work with full efforts.
Its online marketing is also very wide it means it also provides online services that customer's
time save and they do shopping from home (Pantano, and et.al., 2017). It provides quick service
to their customers with quality and its distribution channels is also very strong and systematic. So
all theses things affect to their productivity and profitability.

Q1 Key relevant changes in UK fashion retail
There has been many changes in H&M fashion which will be evaluated on the basis of PESTLE
analysis and micro environmental factors.
Pestle Analysis
A PESTEL analysis is a structure used to examine and reveal the macro-environmental factors
that can have a intense effect on an corporation’s performance. Thus, PESTEL is an word form
for Political, Economical, Social, Technological, Environmental and Legal, these forces are vital
and their impact on organizational activities are profound (Scanning the Environment: PESTEL
Analysis.2016). This PESTEL evaluation of H&M will make it clear how these elements can
have an effect on businesses directly and in a roundabout way.
Political: The most vital political factors that effect any business are the financial
guidelines of an economy. However, each country and its government do not have the equal
prospect on business . Further, political interruption leads to the disruption of the market because
it impacts the economy and thus, it will disrupts the deliver chain after which supply rise to
several difficulties for the H&M as a result they have to limit its deliver chain operations to its
domestic country and neighboring international locations. On the other hand, the free exchange
agreements in Europe have assist H&M in enhancing their sales and its typical organization's
income (Franco. 2017).
Economic: The extent of monetary interest in any country or market has a great impact
on how company's will operate. However, the world has these days been through a low financial
situations and the recession have damage the working of H&M deeply and due to the fact that
then a more potent dollar has made the situation not so satisfactory for them,thus,it has reduced
earnings from the markets of H&M. Moreover, lower monetary activity reduces the purchasing
energy of the customers who start reducing expenses or are pressured to do it and this leads to
heavy cost on sales.
On the flip side, Spain’s speedy-developing financial environment has desired H&M’s
income and universal sales of the clothing retail enterprise, this is because with Spain’s
incredible excessive tiers of unemployment and excessive population, the fee of labor is low
results low production costs and exquisite merchandise with decreased prices which in turn
draws greater clients (Ozdamar Ertekin, and Atik. 2015).