Paper Example on Retail Theory and Practice in the UK

Introduction

Retail is a term used in commerce to refer to the process of commodities getting to their final consumer from the last points of sale. Traders selling to the ultimate consumers are called retailers. The retailers directly or indirectly buy products in large quantities from either manufacturer, distributors, wholesalers, or even importers. They then do bulk breaking and sell the smaller units to the end/final users designated locations (shops/stores). In most supply chains, retailers form the lower end, linking end users to producers. Whereas some stores are situated on residential streets, others are in shopping malls, shopping streets, or shopping centers. Existing and potential customers visit the shop locations to shop (buy items) or to window shop. Window shopping involves just walking around the stores, moving from one store to another, looking, but not buying, any of the items sold therein. Usually, people do window shopping to gauge prices and qualities of the goods. In the contemporary market situation, technology has enabled buyers to window shop online for items whose retailers run online shops (Piotrowicz, & Cuthbertson, 2014). In the United Kingdom, the retail industry has undergone massive transformations, with retailed scrambling for market dominance.

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Fashion Retail Industry in the UK

The fashion retail industry in the United Kingdom offers access to a customer base, both domestically and beyond. The retail market, however, expresses more interest in fashion brands from without its borders (Mccormick, 2014). With interest, companies from Sweden, for instance, have effectively captured a share of the UK market as a result of a growth in the demand for Swedish brands. The market is quite competitive; hence only stronger companies survive its dynamics.

French Connection is among the companies that operate in the fashion retail market in the UK. The company ranks second in the industry, with its presence in around 40 countries. French Connection is an online fashion retailer but is also seeking to provide physical retail after it acquired and converted Browns into a technologically modern showroom (Skousen, 2016). With unmatched super logistics, relatively lower shipping costs, and higher exposure, the company enjoys more senior positions in the market. For instance, it deliveries in ten cities on the very day an order is placed. One of the critical current goals of French Connection is to ensure that, with the help of technology, it promotes excellent retail experience with its customers at the core of its operations - economic analysts in the UK project that French Connection could value at 5 billion euros in the near future. This is because the UK realized a revenue rise of 70% when its sales grew to 12 million euros.

Fundamental Relevant Changes within the UK Fashion Retail

UK fashion retail fashion industry operates in a dynamic condition, influenced by both internal and external factors. These factors dictate and indicate the types of products that consumers would be willing and able to buy if producers supplied them to the market. PESTEL (Political, Economic, Social, Technological, Environmental, and Legal) factors are the significant dictators of market situations (Afrifa, Gyapong, & Monem, 2018). Political systems and policies affect both retailing and shopping activities. For instance, the political environment guides retailers to identify locations for their stores through the land use planning system. Government policies also affect business operations by regulating competition. The policies also protect employment practices and consumer interests. Some regulations also control food stores to safeguard public health.

Economic structures, on the other hand, shape the landscape in retailing. In the UK, large multinational stores, whose headquarters are not necessarily in the nation, dominating the market (Graham, 2018). This is despite the need to promote local companies. Hence, the retail sector operates within the conditions set by the foreign firms as the UK encourages foreign investors to focus on its economy. Socio-cultural factors also play a role in the retail industry. The UK population is characterized by a continually changing lifestyle, ethnicity, culture, and race. Exposure to international markets has dramatically affected the population's attitudes, wants, beliefs, expectations, and needs. Therefore, retailers have to ensure that they become as sensitive as possible so that they cater to various market needs.

Technology also affects the fashion retail industry in the UK - the recent technological developments have impacted the sector. Firms now invest in market research alongside striving to enhance their productivity and efficiency (Graham, 2018). According to market trends, retailers are have embraced and are moving towards online shopping. This has compelled the retail stores to employ the use of social media platforms like Facebook, Twitter, and customized applications to market their products. Lastly, the stores have to operate within a legal framework. National and European Union laws require that the shops conform to sets of standards and regulations. Staffing process, for example, has to follow acts that promote equality when placing staffs.

The above factors (PESTEL) have brought changes like retailers striving to make their shops relevant all the time. They transform the premises into more than just places to transact, but a place that provides experiences that make shoppers feel satisfied (Afrifa, Gyapong, & Monem, 2018). The shops are putting a digital impression in their physical locations so that they attract and maintain customers, with an aim to boost their sales. Another change is the industry is adopting is providing online services even inside their stores. Ideally, this helps their customers to have the online experience even when offline, thereby serving a blend of two worlds (virtual and real).

Virtual and augmented realities have also transformed the retail experience. The realities make shoppers view products in a magical reality, and personalize products and the whole shopping experience from the data that the shops provide. Consumers have an opportunity to try a product before they finally make payments is also another trend that is set in in the UK fashion retail industry. Testing a product before buying will only ensure that shoppers get precisely what they intend to buy. Again, technology is making it possible for retailers to directly contact their potential and current consumers (Afrifa, Gyapong, & Monem, 2018). Snowballing has enabled sellers to reach all potential buyers just by identifying a single customer. Direct contact makes it possible for firms to customize products, and directly respond to their customers' concerns. Directly contacting customers also makes it possible to gauge the value of a store's products, their acceptance and penetration, and usage in the market, hence helping them to map their market segment.

Relevant Changes Within the Micro Environment

The microenvironment of any business venture is the factors that the business has powers to manage. As one moves from an organization to the next, the environment also changes, depending on the structure of the market in which the outlets operate (Hamilton, & Webster, 2018). Some of these factors include product availability, branding of products, retail mix, and marketing strategies. Closely related to the micro-environment is the meso-environment. The latter encompasses all elements relating to competition, and customers (the general demographic structures and its influence on the market). French Connection, for instance, is the second in the UK fashion retail market after Missguided. Missguided, since its inception in 2008, has fast and steadily developed the swiftest supply chains in the industry. The company enjoys the monopoly of a dynamic shopping experience, adding into its list of designs thousands of other new. It also receives extensive media coverage due to its efforts in promoting positive body images.

Following Missguided's prosperity, other companies in the industry have adopted a measure that promotes their public reputation, with an aim to expand their market segments (Hamilton, & Webster, 2018). French Connection, for instance, has ensured that it maintains its presence in over 40 countries around the world. It also offers over 1000 brands across its stores to match the mix in tastes and demand of the quite dynamic market. Other than its large presence, French Connection also has improved delivery of its products to its customers.

The microenvironment can also sometimes involve rebranding, of merging different firms. French Connection, for example, in a move to expand its availability, absorbed Browns and converted the shop into a technologically focused showroom. By acquiring Browns and turning its structural and functional dimensions, French Connection boosted its physical retail experience among its customers (Hamilton, & Webster, 2018). The fashion market is also evolving into a connected-stores structure. Companies, hence, strive to become customer-centric in their decisions and implementations. Most firms now adopt both the physical and virtual presence in the market. They try to engage the latest technologies available to market their brands. Primarily, this is the reason behind their adoption of the use of social sites like Facebook and Instagram to reach their customers, as in the case of French Connection. The microenvironment determines the fate of a company in the market - wrong decisions can make other competitors have an advantage over a firm hence wiping it out of the market.

Strategies and Tactics that Retailers Could Use to Survive Market Dynamics

In a market characterized by constant changes in factors affecting demand and supply of commodities, companies in the fashion retail industry in the United Kingdom have no otherwise, but to comply with forces in the market. As earlier identified, politics play a vital role in the sale of products. With minimal restrictions on entry into the UK market, more foreign companies have freedom of entry and exploitation of available market gaps. In essence, companies could use the freedom to increase their presence in the fashion retail market. First, the firms can open up as more branches as the market can support, to ensure that they tap maximum market potentials (Carroll, & Buchholtz, 2014). Encouragement of free trading zones, other than increasing revenue collection for governments across EU, also promotes globalization. For instance, in 2004, ten countries in the East and Western parts of Europe saw the growth of Tesco in the countries after the advancement of trade across the regions. Since then, Tesco has successfully expanded its retail network all across the region.

Business or economic factors is yet another aspect of operation in the fashion retail industry in the United Kingdom. For instance, in Europe, Britain underwent an economic recession in 2008. That implied that the government had to reduce its interest rates to cushion the possible unemployment rates in the nation. As a result, consumers got better purchasing powers. Others resorted to avoiding some products that they regarded less necessary. In such cases, fashion retail outlets can improvise measure on its pricing so that they maintain their market segments (Carroll, & Buchholtz, 2014). For instance, they could give vouchers and gifts to their customers, as a way to keep their loyalty and to ensure that they (the companies) match the tastes and preferences of the customers. Using the latest technologies also goes a long way to impact the ultimate price of a product. Therefore, companies can ensure that they charge the most appropr...