Retail Theory and Practice Assignment Solved - Next plc

Added on - 22 Nov 2020

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Retail Theory and Practice
ContentsIntroduction to retail...........................................................................................................................5Introduction to company.....................................................................................................................5Key relevant changes in United Kingdom fashion retail..................................................................6Relevant changes in micro environment............................................................................................8Tactics and strategies that could be used...........................................................................................9Conclusion..........................................................................................................................................10REFERENCES..................................................................................................................................11Introduction to retailThe Retail Industry of United Kingdom is an ever changing landscape. It is an rapidlychanging industry and has large impact on Economy of the country. This sector is alonegenerated revenue of around 42.5 billion Pounds and provides employment to approximately409,201 people. The market has been growing steadily in last 7 years. Gradual increase isalso seen in annual expenditure on clothing on the basis of sales volume as it reaches 57.8billion pounds in year 2017(Stewart and Shamdasani, 2014). In United Kingdom market,various leading brands are hold value involving High Street retailers like Next, Primark and
New Look etc. In fashion and clothing industry, annual investment is around 4.8 billion Euroand turnover of the industry is around 171 billion Euro. The market size of fashion retailIndustry is 372.3 billion euro and its market share is 5%. The growth of fashion RetailIndustry has also been supported by increase of niche market like plus size clothing. It wasgarnered around 18.7 million pounds in year 2016 alone.Introduction to companyNext plc is one of the British multinational clothing retailer whose headquarters arelocated in Enderby, Leicestershire, United Kingdom. The company has around 700 storesamong which approximately 509 in UK and 200 across Middle east, Europe and Asia. Bysales, Next plc is one of the largest clothing retailer having overtaken Marks & Spencer inyear 2012 and 2014. The company is established around 154 years ago, in year 1864 byJoseph Hepworth. Key people of the firm includes Michael Roney and Simon Wolfson. Theoperating income of companyis around£827.7million and net income isaround£635.3million. Approximately 49,000 employees are working a within firm for running itsoperations(Joskow, 2014).The company is continue to invest heavily in online businessand aims to maximise investment by 25%. In year 2017, the retail sales and profits ofcompany and fell down. Its sales are declined by 7.9 % and profits by 24%. Whereas, itsonline profits were increased by 7.4 % and sales by 9.2 %. The company plans to going todigital system that enables retailer to target clients in better way and deliver more effectiveshopping experience from home pages and personalized promotions.Key relevant changes in United Kingdom fashion retailFor retail fashion industry, 2016 proved to be a difficult due to various disruptiveevents such as Brexit, terrorism attacks and volatility in stock market of China. Yet, all thecauses that kept disturbing retail fashion sector are not external, there were a some internalsources too. Still, it is expected that industry make strong comeback in year 2017. During thepast some years, it is one of the fastest growing sector (PESTLE Analysis of the Fashionretail industry, 2017). It I grown at the rate of 5.5% in year. Technology is playing a vital rolein influencing taste of customers. A faster growth has seen in fast fusion segment of sectorand is mainly due to luxury affordable brands of segment. PESTLE analysis helps inevaluating various factors that impacts the fashion industry. It includes political, economic,technological, legal, environmental and socio-cultural factors which are defined as follows:
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