Retail Theory and Practice

This report discusses the changes in the market position of the UK fashion clothing market and explores strategies and tactics for success in the retail industry. It focuses on the impact of retail engagement, customer preferences, social shopping, and more. The report also provides insights into the retail strategies and tactics used by Marks & Spencer.

Retail Theory and
Practice

INTRODUCTION
Retailing defined as a selling of goods as well as services to the community instead of
businesses. It is a process that are generally includes small quantity of finished goods sales along
with that buyers motivated and encouraged by their self consumption needs and wants (Diallo
and Lambey-Checchin, 2017). It is a long input-output chain that includes production as well as
allocation of goods to the individual and households whereas retailers are consider as a terminal
member in this value chain. For retailing several retail stores are available within which
economic transaction takes place and consumption starts. In this report Marks & Spencer is
chosen which is the largest British multinational retailer. It was founded in 1884 in London, UK
that specialised in selling high quality clothing’s, home products, food and so on. Under this
report discuss about the changes in the market position of UK fashion clothing market and
discuss some strategies as well as tactics which are useful for responding towards the changes.
TASK
a)
In the rapidly changing market of fashion retail sector, it is essential for retailers and
companies to support its fingers on wave of market in order to remain highly relevant and
familiar (New trends in fashion retail, 2019). Some of the various trends within the UK fashion
clothing market that effect business operation of Marks & Spencer such as follows: Retail engagement: It is on the retailers priority in order to play across trivergence of
retail trends. Retailers require to insights several new ways of customer engagement in
order to get benefits them over the mainly three broad terms such as entertainment,
information as well as convenience. This will assist in understanding the several kinds of
relationship with their customers that they required while supplying products and services
as per their needs. It is considered as a CRM programs as retailers are success to
understand customers preferences, tastes, behaviour and they will be more spontaneous in
how they engage. Alterations in the customers taste as well as preference: As recently it shown that in
retail industry fashion clothing market is change quickly as the change in taste and
preference of customer's this will directly effect on the sales and operational activities of
Marks & Spenser. As person's moves towards the recent trends and technologies

according to that they react in the market and demand those things which are comes new
in the marketplace (Sivapalan and Jebarajakirthy, 2017). Immediate fashion recognition: As in the potential market street style will grow to be
more significant as new technology will make it likely to images on any kind of clothings
that are recognized and purchase. In UK snap fashion, slyce in Canada, style eyes form
Ireland are named as a few start ups that are developing this kind of technology. Social shopping: Recently social media become the new store fronts as some market
leaders are generating link from social sites like twitter, Instagram and linked to retail
sites and works towards taking some rate of commission charges within the range of 3 to
20% which is totally depends on their profile and infrastructure. Now, retailers are
thinking towards the making their own social sites which is evidenced by Net-A-Porter's
the new set. Buying behaviour of customers: In the retail industry many buyers are price conscious
and some other are quality emphasised in order to fulfil the demand of all users a retailer
required different sets of products with unique quality and prices as per the customer's
needs. This factor is largely effect the sales of a company like Marks & Spencer
(Banerjee and Mishra, 2017).
 On sale for regular price: Within the UK consumer price index has up by 29% over
several preceding decades but retailer regular worth for designer fashion are rise approx
60%. in fact, only 55% designer goods are buy at full retail amount in UK while it is only
33% in US. It is also recognised that the sale of high street retailers are enlarged as
double of past years.
The fashion clothing sector of retail industry has been as well as is undergoing important
alterations due to the internationalisation procedure, continuously changes in customers demand
and tactical decisions related to corporate activities (Kim and Jeong, 2019). Especially the retail
market of UK has experienced the important growth factor that has emphasised more
concentration towards the studies in that field that is one of the aggressive market in Europe.
This resulting from the more intense power of large retailers of UK such as Marks & Spencer.
The major issue is the globalisation as there are large number of retailers sourcing internationally
with a aims to supply products with high quality and competitive prices in the marketplace.
Marks & Spencer is challenged by globalisation trends as their competitor’s gives discounts as

well as its supermarket competitors. Marks & Spencer's UK sales unfitted 1.8% to £9440.7m in
the year of March 2019 as its home and clothing categories continuing to underachieved.
In this market clothing is predict to go above overall expansion and development of retail
sectors between the 2017-2022 as it is considered as a third fastest growing sector in comparison
of health & beauty as well as food & grocery (The UK clothing market 2017-2022, 2019). Hard
consumers expenditure will be the under force as clothing will stay strapping with a growth of
16.6% that is expected over subsequently five years instead of 12.7% over the past. As customers
are more anxiety towards the fashion trends, appearance as well as their desire that will assist in
the growth drivers in order to treat them successfully.
Whereas, Marks & Spencer stay with the leading position in the market as it predicts to
grant shares as well as it is anticipated to be a big loser in 2017 by dropping .4% in its shares and
ends with 8.2%. in addition their closest competitors Next forecast to experience the decline
stage in its share in 2017 as it has weak trading as well as lack of focus to blame it will stay
below 1% as compared to M&S.
The UK retail fashion sector:
As per the data of research it finds that the market of UK fashion could fall in its value by
£350 million in next one year while all shopper number have raised by 228000 and fashion
market declined 0.4% at the same time. It can be shown by the graph that are as below:
(Source : UK fashion sector, 2018)

It has been seen that form the above graph, 2/3 of fashion market of clothing, footwear
and accessories sold in past decades were at full retail price through which the sales value is
decreased by £443 m (UK fashion sector, 2019).
b) .
There are several strategies which can be used by Marks & Spencer in order to acts
positively on the fluctuations within the market that are presently accessible in the market of
retail fashion clothing in UK. All these strategies as well as tactics helps a lot to design and
implementing the changes appropriately and satisfy the customer’s needs and wants. Whereas
retail strategy is defined as a holistic marketing plan associated to the products and services in
order to approach and encourage their potential customer's. These strategies are developed for
the purpose of product distribution through retail outlets (Obayi, 2017). As in order to adopt
retail outlets there are several factors which impacts on the company's sales such as price,
product, promotional strategy, place, incentive structure for retailers and so on. To keep in the
view of all aspects a company require some kind of effective strategies and tactics plan.
Some of the strategies which can be adopted by the retailers in order to deal with
alterations: Leverage social media: According to the retail as well as social media marketing as there
are mainly three platforms which are commonly and highly used by all retailers to
responds on Social shopping trends of fashion clothing market in retail industry. These
includes Pinterest, Facebook and Twitter as they are more customer centric networks
whereas Pinterest has added advantage of being a people surface as they scroll and search
towards that things which they want to purchase and on the behalf of their reviews and
ratings they buy it. Here, a more advantage for retailers if they want to get high visibility
on social sites of their brand then they need to pay it. Customer relationship management strategy: This is very important approach that are
used by retailers in order to manage interaction of brand with their customer's either
potential or current (Naidoo and Gasparatos, 2018). This will helps in responds in the
direction of the retail engagement trends of retail market related to the fashion clothing.
This tool is used in order to get customers history and past experience as well as analysed
to develop positive relationships with them as it is widely available trend in the market.

In order to maintain relations a company also use email marketing to provide latest
informations that are convenient for them. Product development: to deal with the latest trends related to the vary in the taste and
preferences of customers, the retailers should use this type of strategy that is required to
satisfy the new demands of the customers in the time frame which helps in rising the
products sales as well as profits. Technological development strategy: Retailers can use this strategy in order to facilitate
products towards the instant fashion recognition as well as promote street market
fashion (Nagle and Müller, 2017). This will helps Marks & Spencer by making possible
to image on clothing’s and items that are effectively identified and purchased by
customer's. In UK snap fashion is on the top of instant fashion technique in image
recognition on products.
 Go extra miles for their customers: It is also includes in the strategy of retailers as it will
helps in selling high range of products to the customers along with the great experience
of services. To be a successful retailer firstly it requires delivering the world class
services as going some extra miles as well as always serves little more than the
expectations of customers. In addition retailers and staff members interact with customers
in order to win their trust as well as make them loyal for a long period of time.
Some of the tactics are discussed below that can be used by the retailers of Marks &
Spencer in order to deal with the changes that are being occurred within the retail market
of fashion clothing’s:
Basis Meaning Statement with context of retailers of M&S
Product This is either tangible or
intangible in nature that are
actually served to the
customers according to
their demand and
expectations. Taking right
kind of product range helps
in taking effective
decisions towards the
This is related to the retailers as they need to produce
products as the customers want to purchase and
provide in a wide range in order to satisfy their
customers expectation as well as desires. It plays an
important role in order to earning profits as well as
developing a successful business (Thompson and Mc
Larney, 2017). In order to responds according to the
market trends and changes retailers of Marks &
Spencer can develop product differentiation strategy

marketing trends. and deals in wide range of products that are
differentiate the products features, quality, price,
design etc. that are more suitable to the customers
demands.
Price It describe the amount of
that offerings that the
customers are willing to
pay in exchange of their
products and services.
It must be needed consistent in order to meet the
business requirements and price Marks & Spencer
products at that level which are easily affordable by
users and gives some values to the company (Goworek,
2018). It could be offering in high as well as low which
are totally depends on the customer’s offerings and
quality of products. Retailers of Marks & Spencer's can
choose discount and affordable pricing scheme in
order to get benefits of low price as compared to its
competitors and satisfy more customers.
Place It refers to the point of sale
to get high visibility and
eye catching view of
customers as well as
facilitates physical location
to sale and distributes
products and services.
In order to get high presence in the market retailers of
Marks & Spencer requires to facilitates right place to
their customers for purchase products as per their
requirements it can be a physical stores, websites,
catalogue etc. In order to available their products in the
market the retailers of a company like M&S can moves
towards the stores online as well as offline, physical
location and websites to order the products by
customers making convenient.
Promotio
n
This is refers to the all
activities that are used in
order to promote their
products and services in the
marketplace and aware
more customers as well as
encourage them to buy it.
This is most useful to promote their products and aware
large number of customers towards the benefits an uses
of products (Fernie and Sparks, 2018). In order to
promote Marks & Spencer products retailer can use
social media marketing as consumers are more
available on social media and networking sites that
helps in providing more awareness and information to

This includes publicity,
advertisement, word of
mouth etc.
them by using Facebook, Twitter, Instagram and
Pinterest etc.
CONCLUSION
It has been summarised from the above discussion that retail theories and practices are
essential for the retailers of those companies which deals in retail industry. There are rapidly
changes in the market of fashion clothing sectors in order to get a success retail companies
formulate and implement several strategies to respond on the market trends and lead towards the
success of an organisation. There are also some tactics which is related to product, price, place
and promotions that are acquired by retailers in order to formulate basic plans to get a success
and growth. All these thinks needed to be discussed for the purpose of analysing the current
market trends and their responding strategies and plans in order to respond towards them
effectively.