Retail Theory and Practice: UK Fashion Market and M&S Response

This report delves into the UK fashion clothing market, analyzing it from the perspective of Marks and Spencer (M&S), a major global fashion retailer. The report begins with an executive summary and table of contents, followed by an introduction outlining the report's purpose: to identify key changes in the UK fashion market and recommend strategies for M&S. The report then provides background information on M&S, including its history, global presence, and brand values. A SWOT analysis examines M&S's micro-environment, identifying strengths (brand image, quality, vertical marketing), weaknesses (customer satisfaction, UK market dependency), opportunities (online market, reshaping clothing division), and threats (changing customer demands, Brexit, fashion trends, competition). A PESTLE analysis explores the macro-environment, covering political, economic, social, technological, legal, and environmental factors influencing M&S's operations. The report identifies major changes from both analyses and uses retail life cycle theory to understand M&S's position. Finally, the report suggests strategies and tactics, followed by a conclusion summarizing the findings. The report concludes with references. The report identifies the key changes in the UK fashion clothing market and suggests strategies and tactics that M&S could implement to address these challenges. This assignment is available on Desklib, a platform offering AI-powered study tools and resources for students.

Running head: RETAIL THEORY AND PRACTICE
RETAIL THEORY AND PRACTICE
Name of the Student
Name of the University
Author Note

1RETAIL THEORY AND PRACTICE
Executive Summary
The purpose of this report will be to identify the major changes in the fashion clothing market
place of the United Kingdom, where the viewpoint of fashion retail will be taken from Marks
and Spencer, which is a fashion retail giant operates in the global fashion market place. Key and
applicable changes that has happened within the fashion retail market of the United Kingdom
will be analysed through a PESTLE analysis on the macro environment of threw business
operated by Marks and Spencer, along with a SWOT analysis that will be based on the micro
environment of this company. From these analysis, 2 to 4 major applicable changes from the
macro environmental analysis part will be identified which possess the biggest influence on the
operations done by Marks and Spencer within the region of the United Kingdom. The same will
be done on 1 or 2 identified micro environmental challenges. Retail life cycle theory will be used
in this paper, where the process of retailing that is operated by this organization in the region of
the United Kingdom. Recommended steps will also be discussed in this paper, which need to be
followed by the management of this business house. At last, a brief conclusion will end this
paper where the summary of the paper.

2RETAIL THEORY AND PRACTICE
Table of Contents
Introduction......................................................................................................................................4
About the Organization....................................................................................................................5
Relevant Changes within Micro Environment................................................................................5
Strengths......................................................................................................................................5
Weaknesses..................................................................................................................................6
Opportunities...............................................................................................................................6
Threats.........................................................................................................................................6
Relevant Changes within Macro Environment................................................................................7
Political Factors...........................................................................................................................7
Economic Factors........................................................................................................................7
Social Factors...............................................................................................................................8
Technological Factors..................................................................................................................8
Legal Factors...............................................................................................................................8
Environmental Factors.................................................................................................................9
Suggestion and Discussion of Strategies.........................................................................................9
Recommendation of Strategies......................................................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

3RETAIL THEORY AND PRACTICE
Introduction
The main purpose of this report will be to identify the key changes in fashion clothing
market place of the region of the United Kingdom, where the viewpoint of fashion retail will be
taken from the organization of Marks and Spencer, which is a fashion retail giant operates in the
global fashion market. In this context, the term fashion retail can be regarded as the division of
business that operates in between the customers and manufacturers. In other words, fashion
retailing is also known as the process of buying different as well as wide range of clothes from
the manufacturers and sold them to the ultimate customers from various retail stores or outlets.
The needs and requirements of the people are identified and the details are sent to the
manufacturers, who designs the clothes and make them final product and the retail organizations
like Marks and Spencer sell the finished product to the customers across the markets where they
operates. Thus, it can be stated that the main aim of this paper will be to discuss the fashion retail
market along with the major relevant changes that has happened within the fashion retail market
of the United Kingdom, which will be analysed through a PESTLE analysis on the macro
environment of threw business operated by Marks and Spencer, along with a SWOT analysis that
will be based on the micro environment of this company. From these analysis, 2 to 4 major and
applicable changes from the macro environmental analysis section will be identified which
possess the biggest influence on the operations done by Marks and Spencer within the region of
the United Kingdom. The same will be done on 1 or 2 identified micro environmental
challenges. Retail life cycle theory will be used in this paper, where the process of retailing that
is operated by this organization in the region of the United Kingdom. Recommended steps will
also be discussed in this paper, which need to be followed by the management of this business
house. At last, a brief conclusion will end this paper where the summary of the paper.

4RETAIL THEORY AND PRACTICE
About the Organization
Marks and Spencer Group plc. was established in the year 1884, and is one of the major
fashion giant from the region of the United Kingdom that operates globally. As of 20169, the
number of locations where this company operates is 1,463. Apart from fashion, other products
which are sold from the retail outlets of this business house are food and home products. The
management of this globally reputed retailer promised to help 1,000 communities along with
helping 10 million other people to lead healthier and happier, and make a zero-waste operated
business entity by the year 2025. Marks and Spencer can be regarded as one of the leading retail
house which possess a unique and strong heritage of brand values, which is possessed both with
the help of their employees and 32 million customers. Currently the organization possess 1463
outlets across 57 countries and over 50 international websites. 80,000 people are employed in
this retail giant as of 2020 (marksandspencer.com 2020).
Relevant Changes within Micro Environment
A SWOT analysis will be performed in this report to analyze the micro environment of
the business operations that is performed by Marks and Spencer in the region of the United
Kingdom.
Strengths
Brand image along with offering the best quality fashion at affordable prices is one of the
biggest strength that is enjoyed by the management of this business house in the region of the
United Kingdom. Following innovative approaches through their business operations for more
than 150 years, through which the management has successfully maintained the communication
with the customers from British market. Following of vertical marketing system is another key
strength that is possessed by Marks and Spencer. This helps them to possess an advantageous

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position in development of creation and design of the wide array of fashions sold by them. It can
be said in this context that the private labels like selling premium brands from their retail outlets
like Vero Moda, Louis Vuitton and Versace has also successfully positioned in a better place
from the rival institutions.
Weaknesses
One of the major weakness that is faced by this company is exhibiting of low level of
customer satisfaction. There are serious complaints that has been faced by the management of
this company, which also involves the issue of return policy. Brand loyalty has been affected due
to this, where the brand switching has increased and the customers has shifted to other branded
fashion retail giants like Primark and Burberry. Too much dependency on the market place of the
United Kingdom has also negatively affected the overall business that is operated by the
management of Marks and Spencer.
Opportunities
Advancement in the area of technology has increased the opportunity in the online
market and the same is enjoyed by this organization, who also possess an online platform to
satisfy the needs and wants of their online customers present in the British market place. This has
bolstered their position in the market as well as gained the competitive advantage against its
competitors. Reshaping the clothing division according to ever-changing demand of the
customers is also another major opportunity that can be enjoyed by the management of this
globally operated business entity (Rashid 2016).
Threats
One of the major threat that is faced by this company is meeting the ever-changing
demands of the behavior of the customers in the British market due to advancement in the field

6RETAIL THEORY AND PRACTICE
of technology. Issue of Brexit may also possess a huge threat in the overall business that is
currently possessed by this company. Changing trends in the field of fashion also affects the
fashion retail business that is operated by this business entity. Competition from other major
players like Burberry, Gap, United Colors of Benetton and Primark (Khan 2013).
Relevant Changes within Macro Environment
PESTLE Analysis will be undertaken here to analyze the macro environment of Marks
and Spencer, through which the factors which affects the business operated in the market place
of the United Kingdom can be analysed.
Political Factors
Stability of the British government may affect the businesses operated by this fashion
retail giant. It can be stated in this context that if Brexit happens, then it will definitely affect the
overall business operations of this organization in the British market. The tariffs and trade
regulations will also impact the business operations of Marks and Spencer in this region.
Alterations in the taxation and government policies will also affect the flow of the business that
is operated in all the outlets of this business entity in the British market place. Local government
also possess the power to affect the business operations of the retail outlets that is operated all
over the places of the United Kingdom (Tarasanski 2017).
Economic Factors
The buying behavior of the customers of different fashion garments affect the flow of
business operated, and the management has to alter their strategies to fulfill the satisfaction level
of the customers present in this market place. Conflict with the small retailers over rise in the
prices of the materials that are required to manufacture the clothes along with operating the
business due to the impact on currency will also possess an impact on the flow of operations of

7RETAIL THEORY AND PRACTICE
Marks and Spencer if Brexit happens. Rise of discount competitors are also affecting the
business that is operated by this business entity in the British market.
Social Factors
Changes in the lifestyle of the people hugely impacts the decision making of the
management of Marks and Spencer. Apart from this, changes in the demography of the regions
where they possess a retail outlet operates also possess impacts on the strategy and decision
making for this company. As they are operating for over 150 years, the modern trends and
lifestyle among the young aged segment affects the business, and possess a challenge to satisfy
their demands according to their lifestyle. Negative social trends are created through the chain of
products that are sold by this business house in the British market place (Polman and
Bhattacharya 2016).
Technological Factors
Advancement in the area of technology has impacted hugely on the fashion retail
business performed by the business entities like Marks and Spencer. The needs and wants of the
people are ever-changing and successfully meeting these demand will help to enjoy the
competitive advantage over the rival institutions that operates in the market place of the United
Kingdom. This has prompted them to have their presence in the online platform as well, as most
of the people are familiar with the online shopping behavior which they can do from their
smartphones and instead of visiting the retail outlets of Marks and Spencer physically.
Legal Factors
Policies related to the payment of taxes often affects the flow of the business operations
of fashion retail giants like Marks and Spencer. Dispute in financial viewpoint with Frascati
landlord has already adversely affected the business operations that are performed by Marks and

8RETAIL THEORY AND PRACTICE
Spencer in the British market place (The Irish Times 2020). Following the copyright of the
design of the wide array of clothes that are sold from the market place of this region is also
followed strictly, so that facing the legal actions can be avoided.
Environmental Factors
Regulation and protection related to protection of the environment is a must followed
factor by this fashion retail organization from the United Kingdom. Corporate social
responsibilities are followed by this company in order to safeguard the people through achieving
a sustainable business approach. It can be noted in this context that sustainable approach is
followed by this business house, which has placed them separately in the British market place.
Fair trade also possess an effect on the business environment of Marks and Spencer. This
occurred mainly because smaller producers from this region, who used to get most of the benefits
from these fair trade policies, usually follow and maintain more sustainable business approaches
than the branded business entities. As a result, the decision of this company enjoyed
environmental benefits by selling fair trade products (Choudhary and Piparo 2020).
Suggestion and Discussion of Strategies
Retail Life Cycle theory helps to focus on the experiences that are faced by the retail
houses like Marks and Spencer through four different stages, which are Introduction, Growth,
Maturity and Decline. In this context, it can be stated that the strategies in each of these stages
will vary and depend according to the market condition and market demand for the products that
are sold by the retail outlets of different business entities from this sector. The focus need to be
on the technological factors that drives this fashion industry. It can be said that he fashion retail
outlets are in the decline phase compared to the growth of supermarkets and internet, which is
forcing to alter the demand in the market place along with the alterations in tastes and

9RETAIL THEORY AND PRACTICE
preferences of the customers (Kiron et al 2013). Marks and Spencer at this moment is in the
maturity stage, where it is quite difficult to increase the market share for the company. Brexit
issue also possess a major threat to the management of Marks and Spencer, who might face
trouble in their business operations in the British market. The online shopping behavior of the
customers also changes due to the advancement in the area of technology, which may also
possess a threat to this company. Still this will be the major area of opportunity where the
management need to focus on, so that the demands of the online consumers can be fulfilled by
reshaping their fashion division. This will help to gain and enjoy sustainable competitive
advantage in the British market place over the rival business entities (Islam 2016).
Vertical marketing system is another key factor that can be used efficiently and
effectively by Marks and Spencer, so that an advantageous position in development of creation
and design of the wide array of fashions sold by them can be followed (Rafiq 2014). It can be
said in this context that the selling premium brands like Vero Moda, Louis Vuitton and Versace
from the retail outlets of Marks and Spencer can also successfully position them in a better place
from the rival institutions who operates in the British market. Sustainable business approaches
can also help them to sustain for longer period of time in this market place, and it can be stated
that corporate social responsibilities performed by the management of this business house will
automatically place them in the leading position in not only in the British market place, but in
other parts of the world where they operates. It has been already discussed that alterations in the
lifestyle of the people hugely impacts the decision making of the organization of Marks and
Spencer. Apart from this, changes in the demography of the regions where they possess a retail
outlet operates also possess impacts on the strategy and decision making for this company. As
this company is operating for over 150 years, the modern trends and lifestyle among the young

10RETAIL THEORY AND PRACTICE
aged segment can be identified and their demands can be met effectively to maintain the revenue
earning for the company (Epstein and Buhovac 2014).
Recommendation of Strategies
After analyzing the micro and macro environment of the business operated by Marks and
Spencer, following are the recommended strategies that can help the organization to make better
the position of this company:
Seasonal discounts need to be provided throughout the year, which will vary for the
online and offline customers. More discounts need to be provided to the offline customers, which
will help to increase the footfall in the stores that are present in the market place of the United
Kingdom. Separate discount will be provided for the online customers in order to satisfy their
demand (Force and Richelle 2016).
Competitions can be held between the customers, where the winner can get Prime
Membership Card, where huge offers and discounts along with early bird offers can be provided
to them. This will help to attract more people towards the brand.
Innovative and latest trendy fashion need to be make available to all the stores of the
region of the United Kingdom, so that it can satisfy the ever-changing demand of the customers.
The same need to be applicable to the online customers as well.
Partnerships with small and medium retail organizations can be formed, so that more
people can attracted towards the newly formed partnership, where the profits and revenues will
be shared equally to possess a fair business operations (Eneizan, Wahab and Bustaman 2015).

11RETAIL THEORY AND PRACTICE
Conclusion
From the above discussion, it can be stated that the concept of retailing is changing,
which is forcing the organization of Marks and Spencer to change. People will always be the
major focal point of the business operated in the British market along with the other places of the
world. The recommended strategies will help to respond to the changing needs of the people
efficiently along with making sure that the employees are happy and motivated, along with
equipped enough to provide their customers the best service at the time of operating the stores
efficiently and effectively (al Habibi 2019). This will also help to gain the sustainable
competitive advantage in the British market place, and maintain their leading position. It can be
noted that retail sector is one of the most competitive business sector, so innovative and modern
technologies need to be used in order to perform efficiently and effectively in this global
competitive business world.