Retail Theory and Practice

Retail theory and Practice

Table of Contents
FORMATIVE ASSESSMENT 1
SUMMATIVE ASSESSMENT 2
Introduction to retail 2
Introduction to the company 2
Relevant changes in UK fashion retail 3
Relevant changes with micro environment 4
Strategies and tactics which could be used 5
Recommendations 6
Conclusion 6
REFERENCES 7

FORMATIVE ASSESSMENT
The retail concept is an idea which examines the evolution and transformation of the
retail life cycle, also the new retailer will typically start with low cost and low margin operations
and after analyzing the needs of customers, company start to offer the product. While on the
other side, the fashion retail industry is that section of a business which works as an
intermediary between manufacturer and customers. Thus, it is a process of buying clothes from
manufacturers and then selling them to customers as well. As per the current situation, the
fashion retail industry contributes the best in order to enhance the GDP.
The study will use Marks and Spencer (M&S) for the study because it is one of the top
retail firms in the UK who work under different sectors such as baby product, clothes, groceries
and furniture etc. Currently the company is operating in more than 1400 places and also
considered one of the strong brands among all retail firms. Or else, if it does not work,
Debnhams is another multinational firm which will be chosen because it also deals with the
retail sector and offers products such that fashion clothing, shoes, toys, accessories, cosmetics
and many more.
There are some macro environment factors which create direct impact upon fashion retail
such as Political, social, technological, environmental and legal factors which affect the business
externally and this in turn also cause positive and negative impact upon business. While on the
other side, suppliers, employees, human resources and plans and policies of a company are
considered some micro environment factor which will also affect the fashion retail sector in both
opposite and positive manner. In the project, relevant theories and models are also applied which
in turn assist to meet the defined aim. Such that Pestle analysis is used which is a macro
environment analysis that helps to determine the external factors who affect the fashion retail.
Also SWOT analysis is also used in which internal factors are determined that support or affect
the business working under the retail industry. While by considering some factors from macro
analysis, Wheel of retailing theory is applied in which pattern of retail development is analyzed.
Such elaborate premises and facilities move the market in order to examine the pattern of the
retail sector. So, by using theories and models which assist to support the discussion and also
generate the best outcome which in turn help to meet the defined aim as well.
For completing the project in a better manner, effective resources are selected such that
the entire study is based upon secondary study and that is why, relevant articles and books are
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selected which are published latest in order to determine the results and gain the knowledge with
regards to the retail industry. It is so because these articles assist researchers to collect best
information regarding the questions so that it did not lay the project in a negative way.
SUMMATIVE ASSESSMENT
Introduction to retail
Retail is the process of selling consumer goods and services to the customers with the
help of multiple channels of distribution with an aim to earn profit. Retail shops are very ancient
history and retailers further satisfy the needs of customers by identifying through a supply chain.
So, shops that work under retail occur in a diverse range of types with a variety of context. Or
else, retail refers to the activity of selling goods and services to customers and end- users as
well. Even around 80% of the sales activity is performed in retail in the UK. .... ....stated that the
idea of retail is also linked with purchase of goods and then sold to the consumer with an aim of
earning profit. Now the market is so wide and there are different scope for people under retailing
in which they meet the needs of customers and also attain the goals as well.
Introduction to the company
The chosen firm for this report is Marks and Spencer which is the top multinational
company which deals with the retail sector. The company's headquarter is in London, UK and
there are around 1450 stores in which around 900 stores deal in food stores. The firm became the
first British retailer in 1998 and there are many stakeholders who also support business in order
to run smoothly. At present situation, company is dealing online in which it offers a range of
products to their customers at international level. M&S offer a different range of products such
as toys, accessories, clothes, furniture, cosmetic items, groceries and many more. Currently the
company offers products with high quality and that is why, it has a strong customer base within
local and international level such that it has around 1000 stores in the UK only who also use e-
commerce platforms.
On the other hand, the business has two division such that Food and General,
Merchandise, firm is also focus on the growth by consolidating their position by leading
international and multi- channel retailers. As per the financial report of a company, its net profit
margin is 23% while net profit is 24 GBP million which shows that company is offering the best
variety of products and services to their customers. It also sustains the brand image at global
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