Comprehensive Analysis of Retail Industry and Marks & Spencer

This report provides a comprehensive analysis of the retail industry, examining current trends such as sustainability, the reinvention of retail, community building, and the increasing role of social media. It then focuses on Marks & Spencer, providing a background, SWOT analysis, and highlighting associated problems, including the impact of BREXIT and the company's dependency on the UK market. The report recommends strategies for Marks & Spencer to adapt to these challenges, including leveraging social media and developing a personalized online application to reduce its reliance on the UK market and enhance customer engagement. The analysis also explores the opportunities and threats within the current retail landscape, emphasizing the need for Marks & Spencer to adapt to evolving consumer behaviors and technological advancements to remain competitive.

Inquiry Project

Table of Contents
INTRODUCTION...........................................................................................................................3
CURRENT TRENDS IN RETAIL INDUSTRY.............................................................................3
Retail industry trends with prominent research......................................................................3
ANALYSIS OF MARKS & SPENCER..........................................................................................5
Background of Marks & Spencer...........................................................................................5
SWOT analysis of Marks & Spencer.....................................................................................6
PROBLEMS ASSOCIATED WITH MARKS & SPENCER.........................................................7
RECOMMENDATION...................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Retail is a procedure or a process by which consumer get their products and services. Written
industry is basically a medium or a channel for meeting the manufacturers and the and
consumers. Retailer is the middle person and the link between the manufacturers and the
customers. Retail is basically a process of selling goods and services to customers with the help
of multiple distribution channels with the motive of earning profits. Retailer satisfies the
demands of consumers by identifying them through a supply chain. This is developed upon retail
industry and Marks and Spencer which is a British multinational retailer. Marks and Spencer was
established in 1884 by Michael marks and Thomas Spencer. The headquarters of Marks and
Spencer are in London UK but it serves in worldwide locations to numerous customers on daily
basis. The report covers current trend of retail industry along with analysis of Marks and Spencer
which is dealing in retail industry. Once the market is analysed and Company performance is
evaluated the problems which are being faced by Marks and Spencer are highlighted and
recommendations are provided according to the current scenario and trends in marketplace.
CURRENT TRENDS IN RETAIL INDUSTRY
Retail industry trends with prominent research
Retail is the vast business sector with a lot of opportunities and threats existing in the
marketplace for the businesses. Retail is changing at unpredictable and rapid speed big
opportunities along with challenges. According to many survey conducted by marketers and
researchers it is said that 2019 at the slowest rate of spending growth since 2010 for UK a retail
market the reason behind it is BREXIT and uncertainties attached with it (Pantano, Priporas and
Stylos, 2018). The retail industry faced large scale of business restructuring people losing their
jobs as many businesses closed down due to recession and decreased market share. On the other
hand the effect of BREXIT was not prominent enough online sales despite of the fall of retail
sector and physical stores. The online sales continue to grow and revenue being increased
through online sales. These factors combine will be e having a great impact on the customer
world and retail industry for coming few years. There are several different which are flourishing

in the marketplace currently and will affect the retail industry in future influencing its business
and profitability.
Figure 1:Key Areas Where Retail Industry Players Can Apply Analytics, 2020
Few current trends are as follows:
1. Sustainability paradigm shift- One of the major contributors to global carbon commission
is retail industry (Pantano and Gandini, 2018). Retail display of very big role in carbon in
the nature and environment. Sustainability is a very big opportunity for all the retailers as
people are becoming aware and their interest and loyalty are moving towards those
retailers who have sustainability on their agenda. Sustainability is a huge opportunity also
a great risk of survival and sustainability in the marketplace to those who do not
prioritise. According to many researchers the retail sector is likely to see strong
transition their products developing environmental friendly and decomposable products
in the coming future. The increasing awareness people towards environment and
responsibility towards nature will become a differentiator for retailers this years as it
allowed retailers to access customer choices accordingly and fulfilling their needs
appropriate manner (Santoro and et. al., 2018).
2. The re-invention of retail continues- The consumers and wires continuous expect unique
experiences and new products. These experiences respected in both stores and in online
processes. Festivals and their needs are regularly changing weather that we through
curated marketplaces, connected spaces or digital journey, are always looking forward to
and wants to have an emotional connection to the shopping experiences. Utilisation and

advanced technology is playing an increasingly important role for making the retail
industry more creative and enhancing the experiences of customers. The proliferation of
choices and options available to buyers is increasing the expectations of people leading
them to look for those marketplaces which provides curated experience that no single or
other retailer can provide or offer.
3. Community, building and participation- The retailers are finding the need for creating a
sense of community which enables them to set their brand and business apart from others
by building strong relationship with their customers gaining their loyalty and enhancing
their experiences (Fujii and Kondo, 2018). Basically, retailers here will be making more
efforts to develop and build a sense of belongingness among customers rather than just
market their goods and services and make sales. It is important for the retailers to
enhance their brand loyalty and building community by their customers and their
business together.
4. Increasing social media and retailer intertwining- Social media has always played a very
huge and vital role in retail marketing and promotions. In coming years this intertwined
relationship of social media and retail is going to increase (von Briel, 2018). According
to various surveys and researchers the top trend is identified is the growth in social
shopping that is through virtual search and other social media platforms. Online shopping
gives an exceptionally smooth shopping experience to the customers offering higher level
of satisfaction and ease. It is very convenient and comfortable for consumers to buy
goods by making research and making their decisions of by just few clicks and saving a
lot of time and chaos of visiting the store and buying the goods. Therefore, it is seen that
social media and retail industry will be increasing the relationship becoming more
stronger and potential with one another.
ANALYSIS OF MARKS & SPENCER
Background of Marks & Spencer
Marks and Spencer is commonly known as a M&S and is a major multinational retailer of
London. Marks and Spencer deals in varied product lines and specialises in selling high-quality
clothing, home products and food products. The company offers clothing for all different genders
and age group it provides women clothing, men clothing and also baby clothes. Marks and

Spencer make sales and accessible to by potential customers through their physical stores and
online websites. Although company do not have its personalised application rather than people
through other online applications. Marks and Spencer is listed on London stock exchange is
constituent of the financial times stock exchange 250 index.
SWOT analysis of Marks & Spencer
Strengths Weakness
 The strongest and the most potential
strength of Marks and Spencer is its
presence with around 1500 stores
worldwide. The company’s international
expansion via franchisees gives a very
strong competitive edge in comparison
to its competitors or other businesses
present in UK. Spenser is currently
trading in 59 territories across Europe,
Asia and the Middle East with its wholly
owned retail business, retail joint
ventures and retail franchise (Efstratiadi
and et. al., 2019).
 Another beneficial and potential strength
of Marks and Spencer is its shift from a
strong focus on product to more
customer focus strategy. This strategy
proven to be very potential and
beneficial for Marks and Spencer. The
initiative of Marks and Spencer for
providing superb experiences to
customers including in the online sector
on top of its high Street change has
 After Britain exit from European Union
it affected Marks and Spencer as the
company was largely dependent upon
the EU labour force. The company is
struggling to manage its human resource
and change its HR structure in order to
control the global workforce in future.
 Along with it another weakness of Marks
and Spencer is its existing bureaucratic
culture and slow pace of accepting
change and developing itself according
to it. Marks and Spencer is facing huge
problems to deal with the changing
environment and reduce it dependency
over the foreign labour. The company is
accepting the change very slowly which
is affecting its business and its future
opportunities.

enable its growth and expansion.
Opportunities Threats
 The BREXIT not only has negative
impact but also brought a lot of
opportunities for UK a market and the
businesses operating in it. One of the
most potential opportunity which it
created for Marks and Spencer is
increasing their investment in training
UK labour and leverage government
proposal for short term hiring from
global labour market restricting the EU
labour market. It will enhance the
capability is of domestic labour force
reducing the cost and expenses of Marks
and Spencer workforce from foreign
market in higher prices (Pantano and
Vannucci, 2019).
 Another opportunity which is created by
training domestic labour force is
reducing the dependency of Marks and
Spencer on EU labour along with the
products. Marks and Spencer can
enhance the focus of UK products and
reduce that dependency on EU.
 The threat after BREXIT which is most
efficient and influential on the business
of Marks and Spencer is the increasing
trade tariffs between UK and EU. It is a
huge threat and risk to Marks and
Spencer as trade tariffs and taxation
policies will change affecting the cost
and productivity of the business
(Fairchild, 2020).
PROBLEMS ASSOCIATED WITH MARKS & SPENCER
The current retail industry of UK is mainly facing 6 most influential challenges which are
squeeze in income, the shift to online shopping, using taste and preferences of population, rising
overheads, increasing debt of businesses and increasing competition is rising number of retail

shops.. Marks and Spencer has grown and became an iconic British clothing retail firm similarly
employing 85000 employees across its different stores around the world but due to BREXIT and
shrinking market it is also facing number of problems which is closer of some of its outlets.
Another great problem which is faced by Marks and Spencer is its dependency on the UK
market. Marks and Spencer is a global firm that serves to around 32 million customers everyday
through its numerous physical stores but from the sales majority of them takes place in the UK
(Jie and Gengatharen, 2019). Therefore, if the UK retail market is suffering it is affecting the
overall business of Marks and Spencer as majority of its business and revenue is generated from
the UK marketplace and by UK customers. The impact of BREXIT by which the whole economy
of UK is offering is very hard on Marks and Spencer due to its dependency UK economy and
retail industry.
RECOMMENDATION
After thoroughly evaluating and analysing the current trends of retail industry of UK and along
with evaluating the market and current position of Marks and Spencer. Moreover, the problems
which are faced by Marks and Spencer currently in retail industry of the UK after BREXIT and
in general various recommendations and options are available the company for making its
operations stable again and profitable. One of the most potential threat and weakness of Marks
and Spencer is its dependency upon UK market and its bureaucratic culture. The
recommendation or suggestions for Marks and Spencer is:
Figure 2: UK online shopping spend to grow, 2020
According to the current trends of retail industry it is potentially said that social media and retail
industry are intertwined and great relationship which is prove to be beneficial for retail industry
in the past and also in the future (Tannady, Nurprihatin and Hartono, 2018). In order to reduce
the dependency on UK market and customer base Marks and Spencer needs to make more

effective use of social media and digital tools for promoting its offerings and also for making
revenue. Marks and Spencer is dealing in online platforms but do not hold its official online
application which is personalized. it is suggested to Marks and Spencer after the current market
analysis and opportunities available in the marketplace with the help of Internet and social media
that company should make its online presence more prominent and personalized by developing
its application. The application will increase the accessibility of Marks and Spencer in
international market places and to international customers also it is a sustainable source and also
help organisation to develop better relationship with its customers rendering them best purchase
experience and satisfy their needs.
CONCLUSION
The report above concludes and summarises the current status of retail industry in UK and its
impact upon the organisations. According to the evaluation it is concluded that retail industry is
currently suffering but BREXIT is also bringing large opportunities for businesses. The company
can reduce its dependency upon EU market its products and most importantly its labour force.
Making investment training the domestic labour force and increasing the abilities of UK a labour
will help business to reduce their cost and enhance their productivity. Moreover, sustainability
and strong customer relation is the current trend following in the retail industry which can help
the company to enhance their customers experience and the will of the organisation. At the end
recommendation is given to the entity to enhance their online presence and their customer
relationship as the trends of retail industry suggesting and showing great business opportunities.

REFERENCES
Books and Journals
Pantano, E., Priporas, C. V. and Stylos, N., 2018. Knowledge Push Curve (KPC) in retailing:
Evidence from patented innovations analysis affecting retailers' competitiveness.
Journal of Retailing and Consumer Services. 44. pp.150-160.
Santoro, G. and et. al., 2018. Big data for business management in the retail industry.
Management Decision.
Fujii, H. and Kondo, Y., 2018. Decomposition analysis of food waste management with explicit
consideration of priority of alternative management options and its application to the
Japanese food industry from 2008 to 2015. Journal of Cleaner Production. 188. pp.568-
574.
Efstratiadi, M. and et. al., 2019. Analysis of a closed-loop water-cooled refrigeration system in
the food retail industry: A UK case study. Energy. 174. pp.1133-1144.
Fairchild, G. F., 2020. Consumer credit in the retail food industry: attitudinal analysis and
market segmentation (Doctoral dissertation, Texas A&M University. Libraries).
Jie, F. and Gengatharen, D., 2019. Australian food retail supply chain analysis. Business Process
Management Journal.
Tannady, H., Nurprihatin, F. and Hartono, H., 2018. Service quality analysis of two of the largest
retail chains with minimart concept in Indonesia. Business: Theory and Practice. 19.
pp.177-185.
Pantano, E. and Vannucci, V., 2019. Who is innovating? An exploratory research of digital
technologies diffusion in retail industry. Journal of Retailing and Consumer Services.
49. pp.297-304.
von Briel, F., 2018. The future of omnichannel retail: A four-stage Delphi study. Technological
Forecasting and Social Change. 132. pp.217-229.
Pantano, E. and Gandini, A., 2018. Shopping as a “networked experience”: an emerging
framework in the retail industry. International Journal of Retail & Distribution
Management.