Retail Theory and Practice 1

A REPORT FOR MARKS & SPENCER (A LARGE FASHION CLOTHING RETAILER)

TRADING IN THE UK.

Course:

Professor:

University:

The City and State:

Date:
 Retail Theory and Practice 2

A Report for Marks & Spencer (A Large Fashion Clothing Retailer) Trading In the UK.

Introduction to Fashion Retail

The fashion industry in the United Kingdom is one of the biggest retail markets in the

region that keeps changing to adapt to changes in market dynamics and technology

advancements. One aspect of the fashion industry is the constant introduction of new forms of

fashion, tastes, and preferences that make the fashion clothing retailers in the United Kingdom

keep improving their strategies to meet the needs of the diverse customers. The demand for

clothes from the United Kingdom is worldwide and it depends on the economy and environment

in the nation to keep changing and growing (Coste-Manière, I. et al., 2018, 30). The report will

identify the key relevant changes in the UK fashion clothing market and the strategies Marks and

Spencer (M&S), one of the largest fashion clothing retailer trading in the UK will use to respond

to major changes occurring in the fashion clothing market.

Introduction of Marks & Spencer

Marks and Spencer (M&S) is one of the oldest and largest fashion clothing retailer

trading in the United Kingdom. The company specializes in clothing; luxurious food and

homeware in more than 30 countries and have 450 stores in many parts of the UK

(Pookulangara, S. 2012, 200). Marks and Spencer have a large network of customers both in

their stores and online where they offer quality services through a qualified staff of more than

60,000 employees worldwide (Coste-Manière, I. et al., 2018, 30). Michael Marks and Tom

Spencer originally established Marks and Spencer and used the traditional retail system and

selling only British made clothes. The main reason Marks and Spencer keeps expanding their

stores in the UK and other parts of the globe are their positive response to changes, which occurs

in the fashion clothing market and updating their strategies to match with changes in technology
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and market dynamics. The company has managed to keep up with emerging trends such as

digital technologies, economic challenges and political issues such as war and violence (Mollá-

Descals, A. 2012, 1439). Marks and Spencer continues to be one of the largest fashion clothing

retailers with many physical bricks and mortar stores and a huge online presence in the United

Kingdom.

Key relevant changes within the UK Fashion Retail

PESTLE Analysis

One of the key changes seen in the UK fashion clothing market is changes in sociological

factors especially the existence of highly personalized shopping experience and preference

among the UK customers. With changes in technological advancement, many UK shoppers have

new fashion taste and preference that want to be personalized in both the online and offline

market. Marks and Spencer have to adjust to their strategies and customer relationship to

understand the new fashion trends in the market, unique content and customization of clothes for

the younger generation (Coste-Manière, I. et al., 2018, 30). Today, buyers can access different

information about clothing fashion and designs from the internet and social media platforms,

which have changed the fashion industry in the UK for many retailers. The presence of street

clothing and competition from other retailers is one of the key changes occurring in the fashion

clothing market.

Another relevant change within the UK fashion retail is the change in preference of

fashion about the social class. The UK market is increasingly becoming diverse with many

people constantly changing their fashion based on social class, age, and gender and market

dynamics. The industry has to balance between producing fashion clothes that suit the people

who are in a higher social class and for those that prefer low-cost commodities (Pookulangara, S.
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2012, 200). Changes in consumer satisfaction and customer perspective is changing the fashion

industry putting pressure on clothing retailers to come up with unique and original ideas that

combine streetwear and modern generation. Retailers need to improve their strategies to ensure

customer satisfaction and keep up with sociological changes in the market.

In addition, another relevant change is the advancement in technological factors such as

the digitalization of the fashion industry in the UK market. Over the last decade, the

improvement in technology, social media, and the internet have brought many changes in the

fashion clothing market for retailers who have to keep updating their strategies and advertising

campaign both on physical stores and online market (Rageh Ismail, A. 2012, 350). Marketing of

products and competition have increased and retailers have to use fashion week to introduce new

fashion and products in the market and promote their goods in online websites, Facebook and

other social media platforms to interact with customers in the UK and worldwide (Coste-

Manière, I. et al., 2018, 30). Digitalization has made retailers to shift their focus on online

shopping by making their website user-friendly, easy and creative to attract more customers in

the UK market.

The presence of both digital and physical fashion clothing stores have brought change in

the promotion and marketing strategies in the industry. Marks and Spencer need to integrate the

business activities of both digital and fashion stores to one centralized information technology

structure to ensure customers have the same amount of information regardless of the purchasing

process. Marks and Spencer have managed to keep up with technological changes by investing in

both digital and traditional retail system using brick and mortar stores, mobile website,

advertising and social media activities (Rageh Ismail, A. 2012, 350). Technological advances

have brought many useful changes such as interconnection of consumers with the company all
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over the world, easy access to company’s product using online shopping and improvement in

communication that increases customer satisfaction (Goworek, H. et al., 2012, 950). The

variation in the demand of technology has changed the clothing market in the UK demanding

retailers to provide faster delivery and production of fashionable clothes. Customers need

urgency and faster delivery of goods and services, which is challenging for most retailers.

However, Marks and Spencer continue to update their technology to speed up the process and

meet the needs of the customers.

Furthermore, another relevant change within the UK fashion retail is direct to consumer

(D2C) sales. Many of the retailers including Marks and Spencer are shifting to direct to

consumer by getting rid of the intermediaries who hike the prices. The change in sales approach

ensures customers buy clothes that are on fashion directly from the company at a fair price.

Retailers need to use social media platform and internet to reach out to customers and offers

customers the chance to personalize their request and get fashion brands of clothes (Shen, B.,

2014, 750). Shortening the supply line have improved the fashion industry in the UK and have

allowed Marks and Spencer to increase their market share and sales volume.

Moreover, the introduction of second-line fashion stores is another change within the UK

fashion retail. The affordability and availability of this second line clothes are influencing the

fashion industry and posing a threat to major retail stores that sell expensive clothes. Many

customers prefer the second line clothes since they are cheap compared to clothes from Marks

and Spencer (Goworek, H. et al., 2012, 950). This development is leading to huge retailers

changing their strategies and targeting the low-income group with streetwear that is affordable

and fashionable at the same time. Marks and Spencer have suffered from these changes and need
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to improve their product line and fashion taste to win back the low-income group in the UK

market.

Relevant changes within the Micro Environment

Increase in competition is one of the changes in the economic and technological factors

occurring in the UK fashion industry. Competition from emerging fashion stores is a factor of

concern for Marks and Spencer since they are changing the fashion taste and preference for the

customers especially in streetwear for teenagers. The major competitors of Marks and Spencer

include Asda, Sainsbury, and Tesco that have many stores in the UK. Now Marks and Spencer

are closing down some of its stores while Tesco Express and Sainsbury local are expanding their

stores and online presence (Coste-Manière, I. et al., 2018, 30). This trend will lead to Marks and

Spencer losing its customers base and reputation as the leading fashion cloth retailer in the UK.

In addition, renowned designers are taking over the fashion clothing market since they deal with

custom made clothes for celebrities and famous people during social appearances. This change in

the fashion industry is forcing big clothing retailers to collaborate with private designers to target

a huge market share.

The trend of renowned designers is costly but also an opportunity for Marks and Spencer

to venture in new markets that target high social class markets and celebrities in the UK. The

change in the market is also revolutionizing fashion taste and preference since customers are

copying celebrities clothing style making retailers such as Marks and Spencer hunt for

uniqueness in the fashion world to satisfy the needs of consumers (Alexander, N. 2010, 940).

Moreover, government actions are also a relevant change within the UK fashion retail since

policies such as taxation increase the cost of production leading to a hike in fashion clothing

prices. All these changes are relevant in the fashion industry in the UK and changing the way
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Marks and Spencer and other big retailers meet the needs of customers, enhance uniqueness,

customization, and streetwear needed in the market.

Strategies and Tactics to Solve the Changes

The changes occurring in the UK fashion clothing market is a result of the external

environment and internal environmental factors. To manage sociological changes such as an

increase in customer need for personalized clothes and preferences, retailers such as Marks and

Spencer need to integrate marketing activities and cross-media sales, stores, and online presence.

Marks and Spencer need to have a centralized information technology infrastructure that will

help connect with customers in the UK and around the world and easy access to information

about the new clothes in fashion (Mollá-Descals, A. 2012, 1439). Creating a central information

technology infrastructure will also help shoppers to make a quick, satisfying and accurate

purchase of their clothes in Marks and Spencer stores and online shopping.

Moreover, another strategy that Marks and Spencer can use to respond to changes

happening in the UK fashion clothing retail is to use big data to monitor the purchasing

behaviors of shoppers in online websites and stores. A large fashion clothing retailer such as

Marks and Spencer need to utilize the interaction of customers on online shopping to create huge

data that will help in identifying the target market, purchasing patterns and understand the social

income levels to target both high and low-income earners (Goworek, H. et al., 2012, 950). In

addition, another tactic that Marks and Spencer could use to respond to changes in the fashion

industry is to utilize social media platforms better such as Facebook, Instagram, and Snapchat to

connect with younger customers who understand fashion better and demand streetwear worn by

celebrities (Alexander, N. 2010, 940). Marks and Spencer can allow customers to customize their
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clothes and send information via social media platforms and offers feedback to increase their

market share and build a positive relationship with customers.

Marks and Spencer should use both online activities such as e-commerce with offline

commerce in stores to maximize their sales volume and target all market groups including the

older generation that has a hard time using digital methods. The use of celebrity endorsements

and designers is also a positive response to the changes occurring within the UK fashion clothing

retail to attract teenagers who like to be associated with famous people such as singers, dancers,

models, and players (Turker, D. 2014, 840). In addition, Marks and Spencer should respond to

increasing competition in the fashion industry due to technology improvement and renowned

designers by sending its designers to forums, which they will acquire, more knowledge on the

changing trends in the fashion market.

Additional training and skills will help Marks and Spencer to be ahead of the competition

in producing clothes that are in a fashion such as streetwear and target the younger generation in

the UK market. Attending functions such as fashion runways, models workshop will help the

retailer check for contemporary trends and engage with customers directly to learn of their needs

and fashion tastes. Marks and Spencer should also sign up their designers and top employees to

participate in fashion competition to display their talent for advertisement and gain skills to

improve their fashion creativity (Alexander, N. 2010, 940). In this digital generation, there is

changing fashion taste based on the current occasion and mood in the industry and speed of

action is key in increasing sales and market share. Furthermore, another strategy to respond to

changes in the fashion clothing market is diversification of products to meet consumer needs and

increase customers experience on both online and offline stores.

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Diversification of products also allows customers to have variety and options which will

solidify Marks and Spencer position in the fashion clothing market in the UK and globally.

Diversification will have to solve the challenges of competition caused by second line

commodities since the retailer will produce goods for both high-income earners and low-income

earners. Another strategy that Marks and Spencer should use to respond to changes in the fashion

industry is technological advancement such as the use of websites, social media, and the internet

(Turker, D. 2014, 840). Digitalization has many advantages to the fashion retailer such as

offering an easy of marketing the company’s products, engaging customers and offering direct

assistance to consumers. The business can acquire feedback from customers that will help

improve service and quality that will ensure the firm grows and expand throughout the UK

market.

Recommendations

The main recommendations for Marks and Spencer to solve the challenges brought by

changes in the fashion industry are to improve internal adjustments such as the hiring of highly

skilled designers. This will boost the innovation and creativity level in the fashion clothing

market that will help the company deal with competition and expand its number of stores in the

UK. Marks and Spencer should also include customization services for their customers to keep

up with market demand in the fashion industry (Alexander, N. 2010, 940). Allowing customers

to customize and personalize their clothes according to their fashion ideas and creativity will

help improve the relationship and attract more customers to the company. However, this

recommendation is labor intensive and requires skilled personnel that will increase the cost of

production of the company. Another recommendation for Marks and Spencer is to invest in

employees that have the necessary skills to interact with customers in both physical stores and
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online websites to ensure they acquire important ideas and opinions that will help meet their

needs (Perry, P. 2009, 370). Customer relationship management in social media platforms is

important in giving customers updates and information about new clothes in fashion, how to

access the products and reviews of the goods to improve quality and service delivery.

Conclusion

In conclusion, the report has provided the changes occurring within the fashion clothing

market in the UK and the strategies Marks and Spencer can use to solve the challenges in the

fashion industry. The main changes identified in the report include changes in the demand of

technology and digitalization, the use of big data, the existence of highly personalized shopping

and customization of clothes, availability of second-line commodities and direct to consumer

sales. The changes have increased competition in the fashion industry for Marks and Spencer and

it needs to change their strategy and come up with new tactics to remain competitive and expand.

Some of the various tactics put in place by Marks and Spencer to solve the challenges is training

programs for designers and employees, the participation of designers in fashion competition and

utilizing social media platforms to improve customer relationship management.

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References

Alexander, N. and Doherty, A.M., 2010. International retail research: focus, methodology and

conceptual development. International Journal of Retail & Distribution

Management, 38(11/12), pp.928-942.

Coste-Manière, I., Charpentier, P., Boyer, G., Croizet, K., Van Holt, J. and Chhabra, S., 2018.

Innovation and Sustainability in the Luxury Fashion and Fabrics Industry. In Models for

Sustainable Framework in Luxury Fashion (pp. 11-34). Springer, Singapore.

Goworek, H., Fisher, T., Cooper, T., Woodward, S. and Hiller, A., 2012. The sustainable clothing

market: an evaluation of potential strategies for UK retailers. International Journal of

Retail & Distribution Management, 40(12), pp.935-955.

Khan, O., 2013. Managing risk by internalising product design in fashion retail: An exploratory

case of Marks & Spencer. Manchester School of Management, Manchester.

Mollá-Descals, A., Lorenzo-Romero, C., Mondéjar-Jiménez, J.A. and Fayos-Gardó, T., 2012. An

Overview About Fashion Retailing Sector: UK Versus Spain. The International Business

& Economics Research Journal (Online), 11(13), p.1439.

Perry, P. and Towers, N., 2009. Determining the antecedents for a strategy of corporate social

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Pookulangara, S. and Shephard, A., 2013. Slow fashion movement: Understanding consumer

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industry: An analysis of corporate reports. European Management Journal, 32(5),

pp.837-849.