Retail Theory and Practice

Retail Theory
and
Practice

Table of Contents
Introduction to retail.............................................................................................................................3
Introduction to the company.................................................................................................................3
Key relevant changes within the UK fashion retail................................................................................3
Relevant changes within the micro environment..................................................................................5
Porter five forces ..............................................................................................................................5
Suggest and discuss strategies and tactics that could be used..............................................................6
Recommendation .................................................................................................................................7
CONCLUSION.........................................................................................................................................8
REFERENCES..........................................................................................................................................9

Introduction to retail
The process of selling consumer goods and services through various channels of
distribution, to the consumers, in order to earn profit is termed as retail. The demand of the
customers is fulfilled by the retailers through their supply chain process. The same thing
comes under fashion retailing industry that includes buying clothes from manufacturer and
selling them further to customers. UK has always been a place for big business of clothing
and apparels. Currently UK fashion industry comprises the worth of £26 billion and
employees around 800,000 jobs to the economy. Textile as well as fashion exports are
estimated around the total worth of £6.5 billion. This report will include the overview and the
study of UK Fashion retail industry along with the relevant changes and trends in the
microenvironment of this industry. The report will also include different strategies that can be
used for dealing with the changes and challenges of the micro and macro environmental
factors of the industry.
Introduction to the company
The organization being chosen to study the UK retail fashion market is Zara Plc. It is
a Spain multinational brand retailer consisting its headquarters in Arteixo, Spain. Zara Plc
was founded in 1975 by Amancio Ortega and Rosalia a vison of dealing in high quality
clothing products. Currently the company has 10, 000 stores across the world and is he
leading fashion retail brand in UK. The company has placed its product segment of high-class
fashion for upper class people with premium clothing quality. It also has its presence and
existence over online market, consisting of its own brand website and placing its products on
various shopping sites such as amazon etc.
Key relevant changes within the UK fashion retail
In order to understand the relevant changes in the company, PESTLE analysis of
company will be conducted to analyse what are external factors that is affecting the retail
industry.
Political Factors- Zara Plc brand has been widespread in several countries the brand operates
in 1300+ stores across the world. Zara Plc have benefits of utilizing the larger European
Union market where its products have higher chances to travel freely in various countries
without any restrictions and complications of taxes and tariffs. On the other hand, different
countries have their own pricing regulations for the brand for its products and services. The
company believes that it is important to be in touch with the government and working with