Retail Theory and Practice

RETAIL THEORY AND
PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Determine the changes in the clothing market of UK ...........................................................3
TASK 2............................................................................................................................................7
Determine different strategies that will helps to respond on major changes in clothing market 7
Recommendation to improve retail business of Zara.............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Retail marketing is used to aware customer about the products and services to achieve the
sales plans for the company. It involves different strategies and tools to promote the goods and
services to the target customers. Retail business involves producing goods and services by
identifying the consumer needs and desires and evaluating marketing offerings. Retail business
re been been set in order to accomplish the sales and profit margin of the company. Zara is an
UK based organisation which is a multinational retailer focusing on rendering clothing ,
accessories, shoes, perfumes. It is consumer oriented retailer doing business over consumer
durable goods. This report covers changes in the clothing market in UK and different strategies
and tactics used by Zara to major change in the clothing market (Ciravegna and Brenes, 2016).
TASK 1
Determine the changes in the clothing market of UK
With the continuous growing population, the need an desires of people also keeps on
changing, it becomes important to determine the changes the external business environment. In
order to adopt to changes in the macro and micro business environment it becomes important to
adapt to changes in the business environment to maintain the continuous positioning in the
market environment. To analyse the changes in the business environment, SWOT and PEST
analysis is used, SWOT analysis determines internal business environment factors whereas
PEST analysis determines the external business environment.
SWOT analysis
SWOT analysis helps to determine that internal strength and weakness and external
factors of the business environment which negatively or positively impacts the business
situation. Zara uses SWOT analysis in order to determine positioning of the business in the
market (Davis-Sramek and et. al., 2020).
Strengths:
The strength of the business is determined by the areas where the business where the
business is performing well. The strengths of Zara are as:
International market

The major strength of Zara is that it has an international business, international business
helps to increase the customer base of the business and achieve the profit goals (Griva and et. al.,
2018).
Effective internal management
Zara deploys highly skilled employees in the workplace who efficiently performs
different business activities. Due to effective internal management in Zara it achieve productivity
in the business activities.
Weakness:
Dependency on physical stores
The major drawback faced by Zara is that it has lot of reliance on physical stores. Where
people from different location who cannot access to the physical stores it becomes difficult fr
them to take the services from the company.
Fast fashion
Due to the fast fashion changes in Zara, it becomes difficult to develop and sustain into
the current fashion in the market (Journée and Weber, 2017).
High prices
Due expensive prices of products of Zara, it de motivates customer to buy goods and
services of the company which further affects the profitability of the business.
Opportunities:
Eco friendliness
Zara develops products by mentioning environment friendly tags on them which helps to
build goodwill in the minds of the market.
Supply chain management
Supply chain management is determined by the easy availability of products with limited
time period to the final customers. With the rapid delivery of products and services in to final
prospects it helps to customer reliability and goodwill in the market.
Threats:
Competition
Due to the high competition in the external business environment, becomes threat for
Zara to attain competitive advantage. With increase in the competition of the products and