Retail Theory and Practice

This study material provides an in-depth analysis of retail theory and practice, focusing on the fashion retail industry. It covers topics such as PESTLE analysis, Porter's five forces, and strategies for success. The content also includes a case study on the fashion retailer Boohoo, exploring its history, operations, and market position.

Retail theory and practice

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
Introduction to retail....................................................................................................................3
Introduction to the company........................................................................................................3
MAIN BODY ..................................................................................................................................4
PESTLE Analysis-.......................................................................................................................4
Porter's five forces for Boohoo....................................................................................................5
Suggestion and required strategies...............................................................................................6
Recommendations............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10
Appendix-......................................................................................................................................11

INTRODUCTION
Introduction to retail
Retailing is a process in which purchasing and selling of the products and services would
be occurred. It involves the direct interface between the customers and the organizer of the
enterprise activities offering or end-to-end right from the thought. Fashion Retailing is a area of
the enterprise that acts as a mediator between the producers and consumers. It refers as the
process where the purchasing of the clothes from the producers and selling them to the
consumers. Fashion marketing is a strategy to analyse the management and distribution of the
products for the maximization of the profits (Guercini, Bernal and Prentice., 2018). As the
fashion marketer must aware about the past and present fashion trends so that they can know
what the customers will want in the future. The fashion marketing is exciting and dynamic field.
The retailers mainly deal with the style in clothes and provide the most admired style so that they
can attract the customers towards their brand and increase the profit.
Introduction to the company
As the case study on the fashion retailer is based on “Boohoo” organization which is
founded in 2006 and had sales of £856.9 m in 2019. It is a UK based online fashion clothing
industry which is founded by Mahmud Kamani and Carol Kane. Boohoo serving all across the
world while operating some brands like PrettyLittle Thing, boohoo, Boohooman, Misspap, Nasty
Gal, Coast and Karen Millen. Boohoo is specializes in their own brand of the fashion clothing
with over 36000 products. Boohoo group state that its brands “design, market and sell good
quality of clothes, shoes, source and accessories at unstoppable prices” so that they can build
their brand image towards the customers and aware them about their products and designs
manufactured as accordances with the ongoing trends or style and increase the market share and
competition. It was one of the fastest growing online retailers in Britain and the company is
known for it dresses and collaborations with the social media (.Noris, SanMiguel and Cantoni .,
2020). Boohoo mainly placed within the Clothing Selling Marketplace, however as an online
pure-play retailer they also occupy area inside the Online Fashion Market. As the Boohoo falls in
both the markets and compete with online and offline retail brands. Boohoo secured the
showroom and the event area in London and make if latest online retailer to step into physical

retailer. The range of the company is based on the men's and women's clothing with the latest
trends and new styles trending in every day.
MAIN BODY
PESTLE Analysis-
It provides the detailed about the challenges that are operating by the Boohoo will face in
current macro environment other than competitive forces. As the clothing has the big business
enterprise in UK which bring maximum shares in the countries' economy. Boohoos unique
marketing is offering a leading online fashion retail group which is specialized in their own-
brand fashion clothes (Perera., 2017). The PESTLE analyse of the fashion retail industry in the
UK aims to explore how some factors like political, economical, social, technological, legal and
environmental issues affect the UK Boohoo fashion retailer industry as -
Political Factor- The fashion retail industries having a global reputation in UK. As the changes
are made by the government to take decisions on major challenges faced by the industries. The
recent economic challenge i.e., Covid-19 have hit the industries, and they required more
financial support from the government. The political factors impacting on UK fashion industry.
However, Brexit impacting on the online retail sector with uncertainty that has been a cause of
concerns for many. The UK import shoes and clothes from Europe and if the country's relation
with the Europe Union is disappeared than the Boohoo fashion retail industry have possibly
causing a price boost for many of the clothing items.
Economical Factor- This factor impacting in the changes of macroeconomic environment like
exchange of currency, inflation rate, interest rate, foreign exchange rate and collective
investment in the economy. The recent Covid-19 crisis impacting the economy of the fashion
industry. Therefore, the pandemic affect the Boohoo fashion retailer badly. The fashion
industries adapts a quick changes to any circumstances (Varley and et.al., 2018). The labour cost
and manufacture cost affecting the economy of the country during the pandemic. Boohoo
consider the factors while conducting the study on the economical issue the exchange rate and
stability of host country and the infrastructure of their retail industry.
Social Factor- The trends and culture of the society impacting the organization in an
environment as many people in the UK are purchasing the fashion products. As the customers
are more active in the online shopping cause it is easy for them to use the online platform and

source directly and choose products. The Boohoo uses social media cause it's a strong influencer
in fashion industry. The social factor increases the consumer actions with an increase in active
smartphones and internet users.
Technological Factor- It is difficult to establish the e-commerce business with the fashion brand
in the UK. Technology is fast interrupt in various industries across the board. The organization
should not only do study on the new technologies but also adopt it so that they can make changes
in their services and the quality of the products (Shtal and et.al., 2018). While analysing the
technologies it impacts towards the cost structure in the retail business enterprise and also on the
value chain structure in consumer service centre. The technologies change having an impact
towards the products which are offered by the Boohoo fashion industry retail store. The new
technology's adoption will increase the competition in the market.
Legal Factor- The Boohoo fashion store must follow the rules and regulations which are set by
the government. They must be aware any changes occurred by the legislation. During pandemic
Covid-19, the Boohoo launched fashion face masks. So that they can maximize the sales of their
products and increase the brand image and the customers towards their brand. Boohoo consider
some legal factor while entering into a new market are the employment law, health and safety
law, e-commerce and consumer protection, information protection.
Environmental Factor- This factor involves the nearby environment which affect the business
and influences living organisms. Different market have different standards or norms to follow
which can impact towards the profitability of the organization in the markets (Nandonde, 2019).
While entering into the market the Boohoo must consider some environmental factors such as
weather, laws regulating environment pollution, waste direction in consumer service sector,
attitude towards the green products and support for renewable energy.
Porter's five forces for Boohoo
With the help of porter's five forces help to identify all the competitive forces which help
in evaluating the industries strength and weakness so that the organization can make required
strategies accordingly. Boohoo can identify its competitors and develop its strategies to survive
in the market (Varelas and Georgopoulos, 2017). Boohoo is a leading company in retail sector
they have changes to method to perform the work and to provide the services to its customer's.

Threats of new entrants: As the Boohoo is a retailer so any new entrant will come with certain
innovation and uniqueness in the work. Basically any new competitor comes with lower price
strategy. The new company will come with product differentiation rather on coming with same
aspects of Boohoo (Le Thuy and Oe, 2020). As the Boohoo is a leading organization in retail
sector so if the new competitor come than they require a huge amount of expenditure to develop
its market and employee's as compared to Boohoo. Weather the distribution network can develop
easily by the new organization with required research and development these all elements affect
the market of Boohoo.
Bargaining power of Supplier: As the organization in retail used to buy their raw material from
cheaper place so that their cost get minimize. As the bargaining power of supplier is standard and
less than compared to customer's because there are lots of supplier in the industries. The
commodities which are supplied by supplier basically non-differentiated so it is having less
shifting cost. The supplier not provide its products supplies on credit this also make it weaker
bargaining power (Varley and et. al., 2018).
Bargaining power of buyers : As the Boohoo is a retail organization so there is lots of
competitor present in the market so the buyer generally have high bargaining power of Boohoo.
As the customer's in the market try to buy the best product at minimum price so the customer's of
Boohoo will shift to its rival if they found the product is being expensive and less in quality. So
Boohoo has to make a huge base of its buyers so that its sell not get affected (Ehgartner, 2018).
Threats of substitutable products and services: the smiler products and services will full fill
the requirement with people than the particular industry have to suffer. The boohoo is tackling
this with being service oriented because customer's like the way in which company is serving
them (Parker-Strak and et. al., 2020).
Rivalry among existing competitor : As the rivalry in the pre- existing organization in the retail
is high, so I lead to decrease the prices of the products and services by this industries generate
less profit. Boohoo is trying to make a differentiation in its products and develop approach so
that it can compete better in the market.
Suggestion and required strategies
From the above analysis it has been found that the retail industry is influence with
various external factors on which Boohoo have no control over it. The external factors include

political, economical, technological, legal and environment. The organization get influenced by
all of these factors from outside. As if the government changes its policies than the Boohoo have
to suffer and adopt the changes accordingly with the time and if the economic is facing issues
related to unemployment, inflation and many other than also company have to face that
individually. The extrinsic factor also include the impact on Boohoo socially so the customer's in
the society they want fresh trend and fashion in their clothes so the company have to change its
cloths style accordingly.
 Boohoo is majorly influenced by political factor that is Brexit. The sells in the market of
UK and international market get effect this because peoples of European are now not
preferring products and services of UK, and they are buying their own products. As the
Britain exit lead to impact a lot to its retail industries because their sell got reduced in
international market by which organization are suffering. The company have make
strategies to deal with the issues related to Brexit they are now expanding there e-
commerce trade because with this plan they will reach to maximum customer's and the
loss which is held due to Brexit can be overcome by this strategy. The online market help
the Boohoo to sell its product to those who don't know the brand earlier but with the
internet they are being aware of the brand and welling to buy the product.
 The company is influence by economic factors and currently the pandemic situation of
COVID-19 is a key factor by which the Boohoo get affected. In the pandemic period the
sell and customer interference of product get changed. Customers are willing to have
safety first so the Boohoo have to make its plan and strategies keeping this in mind. To
deal with the impact the Boohoo have strategy to serve its customer's with maximum
safety (Castro-Lopez, Vazquez-Casielles and Puente, 2019). The company is trying to
take care of safety measures and safe delivery style so that customer's not get hesitated to
buy the products of Boohoo. Due to COVID pandemic situation peoples are not able to
go to stores, and they need full safety on their ordered products so the company have the
plan to serve its people in efficient way in the sense of their individual satisfaction.
 The social factors also have impacts on Boohoo as the people in international market
have mind set to acquire the latest trends and fashionable clothes So if the Boohoo will
not introduce new fashion than people will switch their preference to some other In the
market so for this Boohoo has concept to launch trendy clothes on regular basis so that

people are attracted towards the brand and switch to Boohoo from their brand. The brand
also have market knowledge so that they will make changes accordingly.
 Boohoo is run its business digitally as well as physical stores but in the modern world the
company need to increase its business online so for that company need new and fresh
innovative technologies to stand out in the market so the company has planned to invest
in research and development process to find the needed technology in the competitive
market.
Recommendations
As the Boohoo organization is deal in retail so from facing its various challenges in the
international market because the clothing is most exploited industry. The company can use the
positioning strategy to capture its future opportunities, Boohoo is a retail industries so to increase
its sell digital marketing and selling of product will more effective for the brand. The company
can used the low price strategy so that the customer's get attracted and buy more commodities.
Boohoo is using eco-friendly techniques to produce its goods (Le Thuy and Oe, 2020). The
brand can use innovative style to reach its potential and fresh customers so that they can generate
more profit and the company also have been service oriented rather to being products oriented.
To compete in the international market Boohoo can regularly have to introduce the variety of
clothes as the people are generally needed current fashion and innovative styles because
customer's also want to stand out in the market. Company can develop its productivity with
trained employee's so it can recruit them and also can trained its current worker so that their skill
and knowledge gets enhance.

CONCLUSION
It can be concluded from the above information that the Boohoo fashion retail store in UK
examine the PESTLE analysis to explore the political, economical, social, technological, legal
and environmental issues. The fashion retail in clothing has a big competition in the global
market as the fashion changes on daily basis the company must adopt the on-trends style so that
they can maximize their sales and increase the market share and productivity as per the needs
and wants of the customers and attract the customers towards their products and build their brand
image to maximize the profitability. This report also conclude the porters five forces and some
theories or models that have covered the strategies and challenges faced by the industries that
could employ.

REFERENCES
Books and journals
Castro-Lopez, A., Vazquez-Casielles, R. and Puente, J., 2019. How to manage the online
experience concerning transactional and experimental customers: Case of e-fashion
sector. Journal of Business Economics and Management. 20(3). pp.595-617.
Ehgartner, U., 2018. Discourses of the food retail industry: Changing understandings of ‘the
consumer’and strategies for sustainability. Sustainable Production and
Consumption. 16. pp.154-161.
Guercini, S., Bernal, P.M. and Prentice, C., 2018. New marketing in fashion e-commerce.
Journal of global fashion marketing.9(1). pp.1-8.
Le Thuy, L. and Oe, H., 2020. An Exploratory Discussion of a British Apparel Brand in Relation
to New Markets: Developing Actionable Recommendations Based on Network,
Relationship, and Collaboration Perspectives. Budapest International Research and
Critics Institute (BIRCI-Journal): Humanities and Social Sciences. 3(3). pp.1660-1675.
Le Thuy, L. and Oe, H., 2020. An Exploratory Discussion of a British Apparel Brand in Relation
to New Markets: Developing Actionable Recommendations Based on Network,
Relationship, and Collaboration Perspectives. Budapest International Research and
Critics Institute (BIRCI-Journal): Humanities and Social Sciences. 3(3). pp.1660-1675.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence.38(4). pp.54-61.
Noris, A., SanMiguel, P. and Cantoni, L., 2020, July. Localization and cultural adaptation on the
Web: An explorative study in the fashion domain. In International Conference on
Human-Computer Interaction(pp. 474-492). Springer, Cham.
Parker-Strak, R. and et. al., 2020. Disruptive product development for online fast fashion
retailers. Journal of Fashion Marketing and Management: An International Journal.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Shtal, T and et.al., 2018. Methods of analysis of the external environment of business activities.
Varelas, S. and Georgopoulos, N., 2017. Porter’s competitive forces in the modern globalized
hospitality sector–the case of a Greek tourism destination. J Tour Res. 18. pp.121-131.
Varley, R and et.al., 2018. Fashion management: A strategic approach. Macmillan International
Higher Education.
Varley, R. and et. al., 2018. Fashion management: A strategic approach. Macmillan International
Higher Education.

Appendix-
Political Factor-
Impact on Brexit in the online
retail area.
Economical Factor-
Impact of Covid-19 in
economy.
Social Factor-
Highly used of Social media
influences the fashion
industries.
Technological Factor-
Adoption of new technologies
to increase the profitability.
Legal Factor-
Boohoo launched fashion face
mask during the pandemic
situation.
Environmental Factor-
Increasing the substantiality of
the products.