Marks & Spencer (M&S) Retail Sector COVID-19 Impact Analysis Report

This management report examines the profound impact of the COVID-19 pandemic on the retail sector, with a specific focus on Marks & Spencer (M&S). The report begins with an introduction highlighting the widespread negative effects of the pandemic on various business sectors, particularly retail, due to lockdowns and supply chain disruptions. It details the research methodology, including the use of qualitative research methods, positivism philosophy, and an exploratory approach, along with data collection through primary and secondary sources. The findings section presents primary research data collected through questionnaires from M&S employees, analyzed thematically. The report further discusses the challenges faced by M&S, including declining sales and operational difficulties. It also provides recommendations and concludes with a summary of the key findings, emphasizing the need for strategic solutions to mitigate the adverse effects of the pandemic and prepare for future challenges. The report concludes with references and appendices containing the questionnaire used for data collection.

MANAGEMENT
REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
BACKGROUND.............................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................6
FINDINGS.......................................................................................................................................7
Critical evaluation of issues.......................................................................................................16
RECOMMENDATIONS...............................................................................................................19
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22
APPENDIX....................................................................................................................................24
Questionnaire.............................................................................................................................24

INTRODUCTION
Covid-19 has created pandemic situation for the world from past few months and has
impacted all type business sectors such as hospitality, travel and tourism, food, clothing,
pharmaceutical and retail sector negatively. However, retail sector is highly affected from Covid-
19 pandemic because they unable to retail it’s product to the customer. There are various
multinational companies which offers it’s product across the world due to this cannot sell their
services. Supply chain management and logistic chain management are backbone of the retail
sector because they support to provide product availability from retail company to customers.
There are various digital media that are using by retail companies to sell their product but
lockdown has reductant all strategies of retail companies. Most of the country’s government have
announced and imposed lockdown in order to preventing corona virus spreading and strictly
aware people’s not to go out from their houses. It has brought huge financial loss in MNC’s
because they are not able to sell it’s product at domestic and global level (Kharoubi and Dolle,
2020). Covid-19 is not only harm physically but also mentally. There is an example to
understand such as a retail company that operates it’s at domestic level and global level through
it’s stores wherein employ wide number of employees to offer product services to the customer.
Due to covid-19 most of the employee avoid to go on physical stores to think that they can
infected by corona virus as resulted brings poor productivity of employees in the workplace.
Such consequences have impacted whole year revenue of the companies. This research project
will provide understanding about challenges or issues that are faced by Marks & Spencer in retail
sector due to Covid-19.
This research will supportive all companies which operates their business in retail sector
because it will include all actual facts that are facing by retail companies currently. It also
highlighted several issues that arising by covid-19. This pandemic is not only impacted UK’s
market but also whole world’s retail market. There are numerous retail companies which are
fully dependent on logistic and supply chain management but due to lockdown they are facing
heavy financial loss whereas this research project will support such company to deal with in such
consequences. With this research project individuals retail company is not only finds solution of
identified challenges but also will be mentally prepared to take advantage over such situation in

future effectively (Authority, 2018). There is a reason to choose this topic for research purpose
such as it is one of the most economic stimulant business sectors among others and essential for
human needs. But currently this sector is facing various challenges to operate their business. In
the research project will pick all authentic and realistic sources related to research topic by the
support of effective data colleting tools which will maintain quality of all collected information
so that logical conclusion can draw. Overall, this research will become source of solution for the
retail sector in recent time as well as future perspective. This research project will include aims
and objectives of the Marks & Spencer.
BACKGROUND
It has evident that Covid-19 pandemic is bringing huge jeopardise for the retail sector in
UK which was enormously susceptible for it’s future positioning after Brexit interference. Retail
industry gives huge contribution in stimulating overall GDP rate such as around 5%. But
extensive rules of social distancing are cancelling all major events like marketing campaign etc.
in order to influence customer to buy product, lockdown economy etc. are ultimately affecting
entire retail industry. It has evident that particular retail sector is facing issues of the pandemic
whereas most of the small-scale business ventures have closed their businesses while
multinational companies are struggling with most cruel brunt due to social distancing and
lockdown rules. So, it is required to analyse that how Covid-19 has impacted selling revenue in
the retail sector and what are issues or challenges which are facing by retail industry (COVID-
19: How retailers can overcome the challenges of a pandemic, 2020). In this research will
clearly highlighted probable solution of determined challenges and those can be implemented by
retail companies in order to reducing negative impact and keep going their business in the retail
sector for prolong time. Marks & Spencer Group plc is a British multinational retailer company
which is headquartered in London, England, UK. it is operated in more than 1463 location
through it’s conventional stores. Around 80,000 employees offer their services in the company.
It posses’ wide product categories such as clothing, home and food product and sell to customer
among customers across the world. It also has wide brand portfolio and offers product services to
the customer. It offers product services across the world through their subsidiaries but most of
the countries have imposed lockdown in order to break chain of spread disease. Due to this it
unable to sell it’s products which has brought heavy loss in company. However, it has faced huge

loss during Brexit as well because it has to change their product and policies according to
government norms and it unable to trade its product into multiple country due to trade restriction.
Shares price of Marks & Spencer has suspended in 2019.
Figure 1: M&S SHARES PRICE
Source: (M&S drops out of FTSE 100 after shares)
So, management of M&S has framed objectives to deal with current and post situation
such as “to evaluate impact of Covid-19 on selling scale in the retail sector”, “to determine
overall impact that this Covid-19 pandemic has led on Marks & Spencer in particular”, “to
analyse various challenges that the decrease sales will exist” and “to create strategic solutions
based on the determined challenges”.
Aim
“To analyse several negative impacts on retail sector of the UK after glocal Covid-19
pandemic. A case study on Marks & Spencer.”
Research Question
 How the retail sector in UK has been impacted by the COVID-19?
 What is the effect of this pandemic on sales of Marks & Spencer?

 What are the challenges that arises in retail company due to decline sales?
Significance
This research topic has been elected extensive details over the different aspects which are
affiliated with the impact that global Covid-19 pandemic. Due to this it will have and having on
the entire retail industry. So, it is essential to evaluate all negative impact and problems which
are experiencing by retail companies in declining of sales. However, this research will support
in determining that what are the factors that related with reduction in sales of the retail
companies particularly. This research will support to understand impact of global pandemic
which has developed from past few months and how these will impact in future as well, so it is
essential to conduct research on this topic. This research will become as representative of the all
issues and challenges that will be struggled by the MNC’s and small-scale companies in the
UK’s retail sector especially (5 Challenges the new Retail post Covid-19 needs to overcome,
2020). However, this research is not only proposed by scholar and others researchers but also
involves managers of the company who already have been running their companies in the UK’s
retail sector.
RESEARCH METHODOLOGY
 Research Type: It is a well-organized process of searching new information, idea and
thoughts that assist in increasing potential of the company. Qualitative and quantitative
method are two major methods of research type which helps business in collecting
quality information related research topic with accuracy precisely. Qualitative method
supports to maintain quality while gathering data. on the other hand, quantitative method
provides information in numerical figure which is bit harder for all people to understand
effectively. Qualitative method will use for this research because it is necessary to collect
realistic data then logical conclusion can be portrayed of entire research. With this
method will collect overall data related to Marks & Spencer current scenario because in
recent time company has faced heavy loss in it’s business due to COVID-19 pandemic.
 Research Philosophy: It is basically dependent on theories that helps in collecting data in
precise manner. It contains two type philosophies such as positivism and interpretivism
whereas interpretivism philosophy explore reality of the business environment and

supports to select relevant data from whole collected data. While positivism philosophy
assists in gathering authentic data which already present in the business environment. In
this research will use positivism philosophy. The reason behind is that this research needs
actual data for the further process. Positivism philosophy method will support to collect
all realistic information regarding M&S situation like it’s financial infrastructure,
employee retention, profit margin as well as customer occupancy. With this information
can be analysed situation of the business in current period as well postcovid-19.
 Research Design: This method is used for conducting research process in the business
market. Inductive, deductive and abductive are the three types of research design. This
method plays significant role for qualitative research method so, it will use for this
research (Landgren, 2020).
 Research Approach: Exploratory, explanatory and descriptive are the three major
categories of research approach. whereas descriptive approach is proposed to understand
behaviour of individuals. On contrary, explanatory research identify factors that will have
or having impact on business environment directly. However, exploratory approach
supports in gaining logical answering on given questionnaire. Exploratory approach will
use for this research because it requires to get answers on proposed questions related to
research topic. To examine situation of the M&S will prepare questionnaires then this
exploratory method helps to record logical answering of respondents.
 Research Sampling: Probably and non-probably are two methods of data collection. This
research requires random sampling in order to get actual data during interview session. In
addition, random sampling method gives equal opportunity to all people to be part of
sample population without rising issue of discrimination. Marks & Spencer selects 30
random employees as sample population for the questionnaire (Mohajan, 2018).
 Data Collection: it is one of the most essential tools for the research project because it
supports to collect data from different sources. It is further categorized into two methods
primary and secondary. Primary method supports to gather actual data by interview
session. On the other hand, secondary method is used for collecting information through
available sources like book, articles, internet and social media. Primary and secondary
both methods will use for this research in order to gather authentic and realistic data
related to topic. Sample population is the primary resource for the M&S who will give

answering of proposed questions. On the other hand, internet, social media, last 1-year
newspapers etc. are the secondary source through which will gather information about
M&S situation in the retail sector.
 Data Analysis: It is another effective method that offer opportunity to select authentic
data from entire collected data in effective manner. There are two methods thematic and
statistic method whereas thematic method distributes whole collected data into different
themes which can be interpreted effectively. This method is necessary for this research
because it will play significant role while preparing questionnaires for interview session
(Ørngreen and Levinsen, 2017).
 Ethical Consideration: Ethical consideration is the set of rules and principles that
necessary to maintain wellbeing of people who act as sample population. According to
ethical consideration, researchers must comply all rules and regulation which are
designed and implemented by government while conducting research because it will help
to maintain ethic and quality of research as well as keeps sample population free from
discrimination. Marks & Spencer meets all ethical consideration and uses such practices
which maintains dignity and respect of individuals in interview session.
FINDINGS
Primary research data
Primary has been directed accordingly with the proposed aim and critical finding also
have collected by sample population answering which were asking by questionnaire method that
will be interpreted in this task. Thematic data analysis method has used to represent collected
data into following manner.
Theme 1: High majority of participants agreed that Marks & Spencer have been impacted
severely.
How has M&S been impacted by the Covid-19 pandemic? Frequency
Extremely affected 3
Affected 27

Neutral 0
Unaffected 0
Completely unaffected 0
Total 30
Interpretation: The above chart has mentioned clearly that out of 30 communicators 27
respondents replied that Marks & Spencer has been impacted by Covid-19 pandemic negatively.
The reason behind is that it is multinational company which offers it’s products services to the
customer with support of subsidiaries which are located into multiple countries across the world.
Due to Covid-19 pandemic it was unable to sell it’s product to the users at different location
which has brought heavy financial loss. There is a evidence of the fact that global lockdown and
social distancing forced public to stay at home that ultimately decline purchasing behaviour as
compared usual days. Thus, retail industry has faced multiple consequences during Covid-19

pandemic. It has been analysed based on majority answering that M&S were affected from
Covid-19.
Theme 2: Maximum respondents have started again to operate their retail companies as normal
in recent time when this lockdown has been removed.
Currently, are you working as employee or worker, homeless
or quarantine centre?
Frequency
Quarantine 7
Homeless 0
Running retail companies as usual 23
Others 0
Total 30
Interpretation: It has interpreted that 5 participants out of 30 respondents who works as
quarantine centres. Remaining 25 employees of M&S are operating as general retail stores only
ready to give product accordingly their product list as soon as they reach. Few stores of M&S are
works as quarantine centres in their last stage and that are being in process quickly to operate as

retailing stores again. None stores of M&S are involved in other activities like shelter for
homeless.
Theme 3: The arrival frequency of customers is affected in most of the retail companies or
stores.
Do you think arrival occurrence of the customers on the
retail store and mall is affected or not post pandemic?
Frequency
Yes 22
No 8
Not sure 0
Total 30
Interpretation: Pie chart above denotes that out 73% of the participants agreed that customers
visiting in retail stores is affected. It can be illustrated by fact that after Brexit interruption,

uncertainty associated with trade relation between EU and UK as well as trade fairs like
circumstances were already tremendously affected retail UK’s public. Now there is global
pandemic that has reduced overall possibilities of accessing existing and new customers. Thus, it
has affected large customer base significantly. There were only 7 respondents who answered
that M&S has not affected by global pandemic but they did not have any evidence to prove their
statement.
Theme 4: Welfare scheme were offered by government in the form of assistance that was
received by participants.
Have you gained any type of assistance from the
government?
Frequency
Establishments of various welfare schemes 10
Tax liberation 8
Support through mortgage payments 8
All of the above 0
None of the above 5
Others 0
Total 30