Consultancy Project Report: Causes Behind M&S Sales Decline in the UK

This consultancy project report investigates the major causes behind the decline in sales of Marks and Spencer (M&S) in the UK. The report begins with an overview of the research, including the background, rationale, aim, objectives, and research questions. It then delves into a literature review, examining current trends in the retail sector, the causes behind M&S's sales decline, and strategies for improvement like revamping stores and websites. The methodology section details the research approach, design, data collection, and analysis methods. The report then presents and interprets the data analysis, followed by a discussion of the findings. The conclusion summarizes the key points and offers recommendations for M&S. The report covers various aspects like the retail sector trends, the impact of online sales, and the importance of adapting to changing consumer demands. It highlights factors that negatively impact sales and provides insights into how M&S can improve its performance. The research utilizes secondary sources, including journals and articles to analyze the sales decline.

Consultancy project
report

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
Overview of Research............................................................................................................1
Background of Research.........................................................................................................1
Rationale of Research.............................................................................................................3
Research Aim.........................................................................................................................3
Research Objectives...............................................................................................................3
Research Questions................................................................................................................4
Outline of Methodology.........................................................................................................4
Research significance.............................................................................................................4
Dissertation Structure.............................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
Current trends in the Retail sector..........................................................................................7
Major causes behind sales decline of M&S...........................................................................9
Revamping stores and website as a strategy to encourage sales for M&S...........................11
RESEARCH METHODOLOGY ..................................................................................................13
Type of investigation............................................................................................................13
Research Philosophy............................................................................................................14
Research Approach...............................................................................................................15
Research Strategy.................................................................................................................15
Research Design...................................................................................................................16
Data collection......................................................................................................................17
Data Analysis........................................................................................................................18
Sampling...............................................................................................................................18
Ethical Consideration...........................................................................................................19
Validity and reliability..........................................................................................................19

DATA ANALYSIS AND INTERPRETATION .........................................................................21
DISCUSSION................................................................................................................................43
CONCLUSION AND RECOMMENDATIONS..........................................................................46
Chapter overview..................................................................................................................46
Conclusion ...........................................................................................................................46
Research Implications / Recommendations..........................................................................47
REFERENCES..............................................................................................................................49

TOPIC: To investigate the major causes behind decline in sales of Marks and Spencer in
UK.
CHAPTER 1: INTRODUCTION
Overview of Research
Sales are the activities concerned to selling the products and services in given period of
time. It is contract among buyer and seller of specific service or goods. Sales identified that seller
gives consumer with products in exchange for particular assets or money. To finish sale, both
seller and consumer have to considered to be more competent to make transaction. To increase
sales of business, marketing department plays a necessary role. Company should focus on
producing goods on the basis of customer demand and also providing them goods accordingly.
Through this, they will be loyal towards it and sustain for long period of time. This investigation
is based on main causes behind decline in the sales of Marks and Spencer in UK. It explains the
causes of sales in detailed manner. It provides information about the main factors which
negatively impact on sales of company (Amankwah-Amoah, Zhang and Sarpong, 2013). The
literature review will be conducted by using the secondary sources which provide information
within less period of time. Through using research methodology, researcher can able to gather
information and analyse for getting positive conclusion.
Background of Research
Marks & Spencer is British multinational retailer founded in year 1884. It is specialising
in selling the home products, foods items and high quality of the clothing. Now it started to sell
the branded products such as Kellogg Corn Flakes. This company has more than 1463 stores in
different countries of world including United Kingdom. The mission of Marks & Spencer is to
build core values on value, innovation quality and trust. It provides high quality of goods to
which can satisfy needs and demands of consumers (Bian and Veloutsou, 2017). Marks &
Spencer company might not be most used supermarket of nation but every year this taps more in
to grocery market of UK that focus from clothing to the food retail. This organisation is having
the massive end of season out that slashing cost of chosen home ware and fashion items across
all the departments. The firm has been reported fall in sales as well as in profits as this continues
to execute main programme. In this, pre – tax profits were down by 10% in year to 31 March at
£523.2m (Riley, 2019). Closure of the 14 stores of Marks and Spencer paradise these all the loss

upcoming jobs come off back of “radical transformation” of firm that has been seen firm close
almost 22 clothing stores. round 600 jobs. This is anticipating that with close of 100 stores there
will be 4300 jobs at risk (Burt and et. al., 2012).
2

Rationale of Research
This research is taken in to consideration on major causes behind decline in sales of
Marks and Spencer in UK. Potential reason to conduct this investigation is that it conducts wide
area of the study that explores knowledge and idea base of a learner strong which interested in
same area of the study. It helps in increase knowledge of learner so that it can able to perform
research activities in an effective manner without facing any issues. This present study has the
practical and academic importance so it gives brief analysis on chosen research area. It helps
learner in improving and enhancing academic skills (Christopher, Peck and Towill, 2014).
Through this, learner can able to perform any research in future without arising any kind of issue.
On the other hand, present study is valuable in executing academic knowledge in to the practical
life so it has the effective options for people which having professional motives in relation to the
business.
Research Aim
It is a necessary part of research as whole activities are based on particular problems
which depicted in research aim (Cowling and et. al., 2015). The research aim provides detailed
information to determine issues and reduce gap in research. It helps in generate the testable and
measurable data that adding gradually to accumulation of knowledge.
The aim of this investigation is “To investigate the major causes behind decline in sales
of Marks and Spencer in UK.”
Research Objectives
These are explained what an investigation is trying to be attain. They mainly summarise
accomplishments that investigator wishes to be accomplish by project and also give proper
direction to study. The research objective is concise, declarative and clear statement that give
proper direction to research particular variables. The main focus of research objective is to
measure variables and explained them in a detailed manner. Mainly the research objectives are
expressed in to lay terms and directed to clients as to an investigator. It is concrete statement that
explaining what an investigation is trying to be attain (Dauvergne and Lister, 2012). The research
objectives are given below:
 To determine the current trends in the Retail sector.
 To investigate the major causes behind sales decline of M&S.
3

 To evaluate revamping stores and website as a strategy to encourage sales for M&S.
Research Questions
The research questions are based on research objectives and they need to be solve by
conducting an investigation (Goworek, 2011). It gives specifics that audience can understand the
purpose of research in an easy manner without requiring the additional explanation. It aids the
learner to focus on an investigation through giving path by research process.
 What are the current trends in the Retail sector?
 What are major causes behind sales decline of M&S?
 What are revamping stores and website as a strategy to encourage sales for M&S?
Outline of Methodology
Methodology is explained as theoretical and systematic analysis of methods which
applied to study area. It is comprising theoretical analysis of body of the methods which are
related with knowledge branch. It allows reader to evaluate validity as well as reliability of
overall study. In conducting this investigation, methodology consists research methods which
helps in conducting an investigation in systematic manner. After then it includes research
philosophies, approaches and research design (Gray, 2015). These all are the most necessary part
of an investigation. Data collection is one of most important part because through this researcher
can collect data by using primary and secondary data. Both methods provide information from
different sources and gives the relevant outcomes effectively. For collecting the data, there is an
effective sampling methods developed through researcher.
Research significance
This research is based on the major causes behind decline in sales of Marks and Spencer
in UK. It states the particular issue related to the research area. It gives the detailed information
about main reason by which the sales of Marks & Spencer decline in United Kingdom. It gives
the effective explanation about particular area and find out the effective solutions to raise
company sales significantly (Gschwandtner, 2014).
Dissertation Structure
Dissertation is document that submitted in support of person presenting research and
findings. Structure of dissertation provides a guideline to conduct an investigation in a systematic
manner. It is necessary that structure of dissertation should include the basic components such as
4

title page, introduction, literature review etc. All these components provide better guidance to
follow all the dissertation steps for conducting an investigation in a systematic manner
(Haddock-Millar and Rigby, 2015). Different components included in dissertation structure
mention below:
Introduction: This chapter define basic outline about doing a dissertation. It specifies the
basic concept of an investigation and also brief summary to provide complicated layout layer. It
is necessary that everything that is considered in introduction should be clear, engaging and also
relevant to research area. It consists aims and objectives related to research which provides the
detailed information. Introduction part should be close with paragraph that leading in to main
part of dissertation smoothly.
Literature Review: It surveys current state of literature on dissertation area and also
defined why dissertation is original in nature. This is obligatory part of substantive investigation
of dissertation. In this research part, data and information collected through using the secondary
sources such as journals, articles and books. These all sources provide reliable information
within less period of time (He, Brinsden and MacGregor, 2014). In addition to this, review is
developed to fill gap in choice of literature and provides list of the sources which have been
relevance to existing work.
Research Methodology: It explains about conduct an investigation and also permit a
learner to assess validity. This part consists primary qualitative or quantitative investigation but
not needed in the dissertation in to theory subjects on secondary investigation. The research
methodology sections provide guidelines to collect data and information in systematic manner.
Results and Analysis: This chapter of dissertation analyse the outcomes which required
to determine the research findings. It is based on information that collected as outcomes of
methodologies which already applied (He, Brinsden and MacGregor, 2014).
Discussion of Results: This dissertation chapter is based on the literature review. In this,
data has been collected by using secondary sources. It provides effectiveness of the literature
review part that helps in getting positive research outcomes. Its main purpose is to interpret and
explain importance of findings. It defines the understanding regarding issue after taking findings
in to the considerations.
Conclusion and Recommendations: It concisely answer main questions of research and
leave a learner with clear understanding of central argument. The conclusion summarises points
5

which made in an argument and also give thought synthesis on main area. This provides the
overall description about whole research. The conclusion interprets findings of research. On the
other hand, recommendations follow conclusion and also opinions which supported through
findings of an investigation (Jones, Comfort and Hillier, 2015).
6

CHAPTER 2: LITERATURE REVIEW
It is survey of the scholarly sources on specific topic. It provides overview of the key
findings, developments and concepts in context to research question. Under this, information
collected from the secondary sources and also not report experimental work. This is effective in
giving a better direction to an investigator to develop theoretical framework that support work in
right manner. This section of dissertation provides in- depth investigation over specific research
problem (Kumar, 2011). Under this, information is collected from using secondary sources for an
instance published articles, journals, magazines etc. The main purpose of literature review is to
gain better understanding of existing investigation and also debate on relevant to specific
research area. It is helpful in build the knowledge in particular topic. On the other hand, literature
review determines area of past scholarship in order to prevent duplication.
Current trends in the Retail sector
As per opinion of Jemma Smith (2019) Retail sector is main part of economy of country
that is made up of the businesses which sell products by stores, internet etc. to public. The retail
economies are independent economies focused on United Kingdom consumer and retail markets.
In year 2017, retail industry of UK generated £395billion worth of retail sales and in year 2018,
industry housed 319000 retail businesses (Mellahi, Jackson and Sparks, 2013). In United
Kingdom, customers are spending online but the physical stores account for lion share of the
retail stores. For the traditional retailers, digital disruption is a main danger. Retail sales in UK
will developed 4.7% to reach at £466.15 billion. On the other hand, demands of consumers have
dedicated changes that come to retail landscape. To stay afloat and also meet with enhancing
requirements, retail sector is evolving constantly and also facing new challenges and
opportunities which encouragement through emerging new technology. In this present time,
organisations use the advanced technology to developing high quality products and also provide
goods to consumers online. In relation to this, it is necessary for the retailers to understand some
of the main key retail industry trends to making business successful. There are some current
trends in retail sector given below:
Invest in Omnichannel Retail Strategies- One of important retail sector trend is to
investment in Omnichannel retail strategies. On the basis of conducted investigation on an
average digital customers owns 3.64 connected devices and also trends to consults them prior to
7

making purchase (Pal, Medway and Byrom, 2011). Customers are able to look goods and
services on their mobile phones and also purchase through them. In addition to this, mobile
commerce will be equal around 50% of all the digital commerce. Focus on the mobile is strategic
move for the retailers, as this permits them to take the benefits of most used buying devices as
well as supplement use with some of the other systems, devices and channels. Some of the
retailers are tapping already in to mobile shopping by using innovative ways. Consumers use
applications for purchasing the products within less time period. With the help of using
application, they can be navigating by consistent journey and explore buying option to compare
goods and services.
Shopping with AR- Augmented Reality (AR), Artificial Intelligence and machine
learning are the advanced technologies which helps in make the business better. Retailers in
United Kingdom are leveraging AR technology to bridge gap among physical and digital space.
With the help of using AR, market is anticipated to reach at £104.32 billion throughout 2021
(Quix and van der Kind, 2016). In this, shopify making the innovative technology to me more
accessibility to small brands by Shopify AR. This feature gives easy- to- use toolkit for the
businesses in order to develop own experiences to showcase goods to consumers by using
browser.
Provide Personalized Retail Experience- This trends of retail industry is more
necessary to consumers. In this, personalisation in retail world includes the retailers which
providing consumers suggestions on the basis of order history, taste, location and the previous
searches. Retailers can develop experiences by using simple services. It consists chat- bots which
enhance consumer’s interaction and engagement, messages that gives proper updated about
orders and some of the other services (Saicheua, Knox and Cooper, 2012). On the other hand,
rise of the personalisation as retail sector trends has the paved manner for application of
advanced as well as innovative technologies such as Artificial Intelligence (AI).
Cognitive computing- On top of providing consumers with new as well as exciting
experiences, cognitive technology permits businesses to collect information for taking effective
business decisions. In this, automation eliminate requirements for the sales professionals to
analyse trends and eliminate human error in process. In this category, computers and robots
falling and they can understand natural language as well as give responses to some common
questions as comparison to human retailers. So, in regards to this consumer can communicate
8

with technology. With the help of this, company can collect information about taste of
consumers and provide them products accordingly. It can assess in make the experience of
customers better in present and future.
Chatbots as sales concierges- The assistants of non- human sales are at top of list when
this comes to retail trends. In this, Retail Bots are handy because they construct the welcome
conversations and also products discovery. On the other hand, associates of human sales can be
jump in to conversations after collecting accurate data. From the online shopping, consumers
save time and cost both. The chatbots allows to consumers to save their liked products in to cart
and order quickly or whenever they want (Scott and Walker, 2017).
Major causes behind sales decline of M&S
According to Amir Qamar (2019), Marks & Spencer is global organisation that serves
around 32 million consumers each year. This company provides high quality of items to people
on the basis of their needs and demands. It is a well-known brand but its past and present issues
are attributable to brand itself. Firm has been struggling with the strategic drift that means
gradual competitiveness deterioration because of falling knowledge and also respond to
necessary changes in business environment. On the other hand, Marks & Spencer is presently
facing high competition as internet has made this easy for consumers in order to compare the
costs and also shops around. According to Global Data, around 25% of fashion and footwear
related goods in UK are purchased online. There are opportunities which given through internet
have resulted in to brands like ASOS that developing dominance in retail market is leading to
ending of the traditional shopping. Marks & Spencer company faces the more competition as
internet has made this easier than shop around, access fashion and compare the prices around
world. About quarter of the footwear and fashion is brought online in UK, switch from high
street is more advantageous like of ASOS and many small brands from the Boden to Me+Em.
This arise the massive investment in automated home delivery of warehouse that has struggled to
deal with demand. Marks & Spencer organisation is closing its 3000 high street stores which
mainly sell food, clothing and homewares (Stuart, 2011). Radical plan will cut amount of the
high street space that devoted to home wares and clothing through quarter.
Retail industry of United Kingdom has been facing many challenges such as shift to
online shopping, squeeze in income, rising overheads, changing tastes etc. This seems that Marks
& Spencer company is struggling as result of aforementioned issues to retail sector of United
9