Unit 29 Task 1

UNIT 29

JACQUELINE FARROW

External CHANGES IN THE

INDUSTRY

TASK 1

PESTLE

UNDERSTANDING RETAILING

Definition OF RETAILING

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he definition of retailing is the sale of goods individually or in small quantities to consumers for personal use. A retailer will buy goods in larger quantities through manufacturers or wholesalers and then sell them for a profit. Retailing can take place either in a fixed location in a store or market, by delivery, online or door-­‐to-­‐door. I am going to produce an article describing the structure and organisation within the retail sector in response to some of the external changes happening within the industry. I will identify competitive factors in the retail environment which the organisation faces including political, economic, technology, social, legal and environmental (PESTLE). I will also explain the function of the retail layout and its purpose for its location.

Retail stores are classified differently depending on where they are based and their overall purpose.

They could be based on residential streets, high streets retail parks or in a shopping mall such as The Trafford Centre. The location of a retail store must be appropriate for its purpose and the store much ensure that enough stock is available to meet the demands of the consumer.

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ultiple chain stores include Primark, Topshop and H&M. They are based on the high street and you will see them in more than one city so the high street can look very much like a uniform of the same stores. The stores may be based on a road which is for pedestrians only or sometimes they may be based somewhere with a full or partial roof to protect shoppers from the weather. Primark has over 250 stores across the UK and Western Europe.

Their fashionable clothing is sold at low end prices for the high street customer.

Being located where they are makes the business more successful as it is easy to draw many customers into a brightly lit store offering fashion at such low prices.

In 2013 the brand made nearly £4.95billion in revenue which was a 17% increase on the previous year reflecting the consumer need for fast fashion.

Across the UK, Primark employs over 48,000 people and is owned by one of the largest food companies in Europe, Associated British Foods plc (abf.co.uk).

As each store is so large they employ a lot of staff to help tidy throughout the day, as it is a continuous job. The need for it to be tidied constantly reflects how successful the business is as it is always busy and it is rare you will find a Primark store that is quiet and calm. In Bournemouth the footfall in the town centre was driven upwards by 27% in 2011 soon after the opening of a Primark store (bournemouthecho.co.uk). The Primark store on Oxford Street, London expanded its store in 2013 after rental rates rose from £350 to £80 per square metre. Stores like Primark which stock such a high quantity of clothing will often manufacture their clothing in

cd Without changes made to our high street and local stores, politicians have warned that many independent stores will have closed by 2015.

BBC NEWS

ba

Met Quarter THE

LIVERPOOL

China as the costs are cheaper than manufacturing in the UK. Independent stores could include Miss Francesca Couture, Little Red Vintage and Boudoir Boutique. These stores are owned by a single person and there is just the one store. They may be based just off the high street in a smaller location as being based on the high street is very expensive for a small business. Due to the recession smaller independent stores are dying out as they have less finance available to them as compared to larger retailers. Small retailers are being squeezed out of the high street by their large rivals who can afford to pay the higher rent prices. As a consumer we benefit from lower prices from the main brands such as Asda but in the long term we could be killing off a breed of stores. For example, Asda, Tesco and Sainsbury’s have set up their own apparel brands which you can buy at the same time as your weekly food shop. This adds a convenience factor for shopping away from the general high street and away from the independent retailer. In our modern and busy lives, people do not have the time to go to different places for different things and

find it more convenient to be able to pick up everything they need in one place.

Miss Francesca Couture is a single store based in the Met Quarter in Liverpool with just a handful of employees. The independent store has recently started selling a small concession range in Selfridges Manchester. Due to the size of the store it was difficult to find the revenue and profit of the store as it was not displayed publically. You could pay £4.99 to get the information from Companies House though. Being an independent store they strive to provide bespoke ready to wear clothing. An online store is also available but provides limited stock and sizes (missfrancescacouture.co.uk).

I searched for the rental rates of having a store in the Met Quarter and found that a smaller unit on the ground floor was approximately £42,160 per year with an added service charge of £26,593.

Department stores include John Lewis, Debenhams, Harvey Nichols and Selfridges. They will sell small concessions of brands within the store and will often range from clothing to home ware.

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epartment stores may also offer a service such as beauty treatments or home design and fitting services for products. The Selfridges brand is a UK based department store but ships worldwide.

According to the Telegraph the store hit £1 billion in sales for the first time in-­‐between 2011-­‐ 2012, which makes its operating profits boost to £133 million (a 5% increase on previous years). Across all the stores in the UK they have over 5,000 staff (retail-­‐week.com) which is needed to maintain the high standards of the store. Their stores provide beauty services, food and restaurants and often hold events to attract consumers.

In March 2014 Selfridges opened an indoor skate park inside the Selfridges store with PRIMARK OPENED SELFRIDGES CONCESSIONS

SELFRIDGES DEPARTMENT STORE -­‐ MANCHESTER

department store. Although they will have to pay rent or commission to the department store which will affect the overall profit, the positive impact on the brand image can be more beneficial. A small concession will only need a few staff members and may boost the footfall of the larger high street stores as their reputation increases.

“Selfridges, the world’s best department store introduces an exhilarating new instore experience as part of a scheme that celebrates the cult of skate and surf” SELFRIDGES ON THEIR INDOOR SKATE PARK

free admission. Having events like this in store can increase the footfall of the store and open opportunities for those who may not normally consider Selfridges as a place to shop for their style. Having a wide range of concessions available for different people makes the store seem more like a one stop shop for all the family, selling a mix of high and low end products.

Concession stores are based in high street stores such as Topshop where they have a Kurt Geiger concession on the shoe floor. This progression of chain stores being sold in small concessions also shows how retail is developing. In 2011 Selfridges opened a concession for both men and women for the low end multiple chain stores Primark. In 2012 the concession was extended from London into the Manchester Trafford Store due to its success with the consumer. A concession store can benefit a brand who is trying to boost its reputation or rebrand its image as they can select the best parts to create a smaller and more tailored collection in a

SELFRIDGES INDOOR SKATE PARK

here are also stores that are aimed for a niche or a specialist market such as Liverpool FC, bridal stores and maternity shops. These stores provide for a specific target market and sell specialised products.

The Mamas & Papas store which is made for parents who are expecting children or already have children is based on most high streets. It was originally established 30 years ago when a new set of parents decided that the products available on the market were not of a high enough standard. In March 2013 the earnings made rose 79% to £5 million which was an improvement on the previous year’s loss. Having such a niche brand makes the brand stand out clearly in the consumers mind. It makes it easier for the consumer to recognise what the brand does and builds a unique brand over possible competitors. A streamlined business will also reduce marketing costs as you do not need to advertise to a more generalised market. On the Mamas & Papas website there is a news story about more store opening due to the enhanced consumer demand as the UK birth rate steadily increases and in turn increases footfall on the high street. Mamas and Papas tend to position their stores alongside Zara, Coast and other higher end high street brands giving off the same higher end impression for their own brand. Their website offers franchise opportunities so that individuals can open their own store in a specified area.

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services the way they do they are able to keep the prices down.

At a glance, the IKEA brand made 28.7 billion in sales with over 135,000 employees. This was between September 2012 and August 2013. This information is available on the IKEA website which is unusual for some brands who are a lot more secretive.

This type of business seems quite open to share their success.

They have had over 716 million visits from consumers and have 314 stores in 27 countries. The IKEA store in this area is located just off the motorway and you can clearly see the large IKEA logo as you drive past. The brand has over 1000 suppliers in 53 countries that make and package the products to ship to the IKEA warehouses.

IKEA also has a very clever floor plan which makes it impossible to just pop in for the one product and be out within a few minutes. Their floor plan ensures that the customer completes the full store layout allowing them to promote more sales and the length of the consumers stay is greatly increased.

As IKEA sell such a wide variety of products, it ensures that the customer is able to view everything on their visit and not just collect what they need and leave.

Catalogue stores such as Argos are usually based on the high street and instead of the shop floor being filled with products; the customer can view all the products for sale in a range of catalogues available. If the customer would like a product they pay for it at the till and the product is then brought to them within a few minutes. The Argos store have 740 stores with 430 million website visits A franchise store can include a year (argos.co.uk). In the financial McDonalds, Subway and O2. year to February 2012, Argos sales These stores are owned by an were £3.9 billion and it employed individual who is working under a 31,000 people across the business. large brand name and selling their Due to the influences of technology products to make a living. A the store is not only based on the franchise is bought by the high street but online and also has franchisee. Once they have its own TV channel. Just last month MAMAS & PAPAS purchased the franchise they have the brand teamed up with Transport to pay a part of their profits to the for London to launch its first franchiser. In an O2 franchise they provide the training and underground store at Cannon Street Tube station. This marketing campaigns for the franchisee and so sometimes for a convenient access to its stores is what the brand is striving consumer it may be difficult to see a franchisee apart from a towards going forward enabling customers to order online and standard store. The Mamas & Papas website states that they have pick up the item on their way to work etc. With the closure of an “extensive training program for key personnel supporting the some of the larger stores, it could look more likely that they will Mamas & Papas operation”. They also offer a web resource which open more of the click and collect style stores. contains all of the information a franchise store would need with Discount outlets are places like Cheshire Oaks where expensive regards to display guidelines, retails standards and technical brands sell their last season products at cheaper prices for information. consumers. It is located out of town normally off a motorway Factory outlets like IKEA are where you can find your own way with a large car park for easy accessibility. The Cheshire Oaks around the products on display and collect the items you want for outlet was the first in the UK and still remains the largest Designer yourself at the end. These stores are usually found on large retail Outlet. The actual size of the retail park is a quarter –million parks due to the amount of space that is needed to store the large square feet of retail space with more than 145 boutiques, amount of products. IKEA is a worldwide brand which offers restaurants and cafes. It could be described as an out of town products at affordable prices for many people. By offering social hub especially due to its late opening hours and restaurants

“The family continues to expand as we open new stores in new

markets across the World, all

reflecting the core values of the brand that make Mamas & Papas so special.”

that are open until 10pm. The brands that are available to buy include Nike, M&S and Next. They also include all the high designer brands such as Burberry, Hugo Boss and Michael Kors. It is owned by the McArthurGlen Group, which is a European company, and so it was difficult to get any revenue figures. An outlet such as this will drive a lot of footfall though as people will be able to get expensive items at

usually at a cheaper price than in a store. Markets like these include the Manchester Christmas Markets, the Great Homer Street Market and the Heritage Market. A market stall is a more flexible way for a sole trader to sell their products as they can normally choose the hours they wish to work and it is a more relaxed atmosphere. The Heritage Market in Liverpool used to be located in disused warehouses but due to the site being bought for redevelopment the Heritage market has closed down. Market areas such as this may not be guaranteed to run unless the people who own the area grant permission. A market area as large as the Heritage can gain a large amount of footfall overall for the city though as its history can even attract tourists and people who are just curious. The Great Homer street market has been part of the city for 180 years and will be getting a revamp over the next few years to bring it into the modern world offering both indoor and outdoor stalls. The modernised street is hoped to increase footfall and to help the market thrive in the future.

A designer discount outlet is a prices even store though they such as are last TX Maxx season. where The outlet many provides a different large designers amount of and parking brands facilities to are sold accommoda together te the high footfall especially at evenings in one place. It could even relate to a and weekends. From personal experience centre such as the Met Quarter which is “At TK Maxx we deliver though the outlet is more popular than small in comparison to The Trafford what the car park accommodation provides. great value on ever-changing Centre but contains smaller higher end Sometimes it can be very difficult to get a brands and smaller boutiques. Miss parking space and so more facilities should selections of brand name and Francesca Couture who as I mentioned be implemented. before is an independent retailer is designer products at prices up located in the Met Quarter. The TK Maxx A shopping village is located in a small town store states on their website that they sell and is there for the local residents. An brand name merchandise which is sold at to 60% less than the RRP example could be West Derby Village where up to 60% less than the prices at a they have a small collection of shops with and at a significant discount traditional department store or high local convenience stores, a hairdressers and street retailer. A store like this would a couple of boutiques. It can be more up to 50,000 items with weekly to the prices in a department stock convenient for people in that local area to deliveries of 10,000 new and get the products and services they need different products. TK Maxx store or on the high street.” rather than having to go further afield. does not consider itself to be West Derby Village has its own resident’s an outlet but an off-­‐price website which advertises local events, TK MAXX retailer selling business sponsors, village history and useful products from information for the area. It would be unlikely that people would thousands of vendors. In 2010/11 TK travel from other towns to shop in West Derby village; places like Maxx increased its turnover in the this tend to be specifically for the people of the local area and UK to £1.3 billion. Some of the would not have enough facilities for someone to want to travel newer and larger TK Maxx from further afield. Local villages like this have been suffering stores cover lately due to out of town supermarkets taking away the footfall. approximately One village in Derbyshire recently lost their local store and now 17,000 sq. ft. have a vending machine to dispense every day essentials. I will go on to explain this in more detail in my PESTLE analysis.

A market stall is normally located where there is available space such as in an unused warehouse or on a long stretch of road. It will be filled with individual vendors selling different products

Store RETAIL

THE

An emerging store type of store is a hybrid store, which is based Retail stores are also based online and can be based both on the on the high street, but it offers more than one purpose. They high street and online or solely online. Stores such as ASOS are offer more than just products and now offer coffee shops and only based online and contain a high amount of products both entertainment opportunities. A good example of this is the high own brand and designer. The item is then shipped to the street store Next which has recently opened a Costa Coffee store customer at the most convenient time for them. Another type of inside. Factory shops and outlets are also becoming more popular online store incudes an Internet auction such as eBay which allows as consumers are looking for ways to make their money go further general consumers to sell on their unused products to other but also find good brand names. Teleshopping is also evolving consumers. The consumer will bid on the item in the hope of with the introduction of smart TVs and the ability to buy straight winning. eBay reported a rise in sales in the third-­‐quarter of 2012 from your TV screen. The QVC shopping channel also has its own as their net profit rose 14% from a year earlier to £445 million. website where you can purchase items directly from. It is eBay has put this down to the increase in mobile use and the becoming rare to find a store which only supports one channel of increased use of PayPal services. eBay’s strengths can make it retailing. I have also noticed that pop up stores unique as they do not compete with other are becoming quite popular on the Liverpool high retailers and it is a globally recognised Facts from the British street. At the moment there is a Harvey Nichols commerce website. As of 2011 eBay employed pop up food store based in the centre of many approximately 27,700 people with over 261 Retail Consortium other high street stores. It is a small store which stores across UK and Ireland. Retailers are also has opened during the run up to Christmas and developing their reach to customers through sells novelty and unusual food treats. This was multi channels. A retailer such as River Island also based in the same place during the previous will not just have a store on the high street but it Retail sales in 2013 totalled £321 year and so must have been a successful venture has used technology to develop an online store, billion. for them to try again. Pop up stores give an online shopping app which you can use on the emerging brands or products the chance to test go. It has also developed its social media 9% of UK businesses are retailers, the consumer market without making a long-­‐ channels to keep in touch with consumers even which totals over 187,600 retailers term commitment on paying rental and rates. when they are not actively shopping. This in the UK. development using multi channels means that

NEXT & COSTA COFFEE HYBRID STORE £32billion worth of sales was from the retailer becomes more than just a retailer, online purchases in 2013. but they have more interactive options and ways

of speaking to the consumer and build up 3 million workers are employed in relationships.

retail in the UK. Most retail stores offer an online option for

Retailers invested on average making purchases, which allows the customer to £1,275 in training per employee in

buy products using the Internet. The internet retail. has some advantages over shopping on the high

street such as convenience, more choice and the Retail pays £19.5 billion in taxes cost of items. The convenience of the internet is

per year. drawing people away from the high street as

Retail pays £7 billion per year on they can save time by shopping from their living business rates. room. It also saves on the cost of travel whether

it by car or public transport and the cost of UK consumers pay 5% less on expensive car parks. The cost of products can

average per basket than in the also differ online. The cost of a physical bricks Eurozone.

and mortar store is greater than having just an online store. The online store can also offer Retail is the largest private sector

more products as they do not need the physical employer in the UK. space to display. The internet also provides

access to worldwide products and services 3 million people work in retail in

whereas the high street is much more limited. the UK. Many businesses may choose to combine a

physical store with an online store and this is known as “clicks and bricks”. The disadvantage

of running both types of stores is the cost yet if

done well can be beneficial for the brand.

Pestle FACTORS OF

proposal to dramatically raise business rates for those retailers who have a bricks and mortar store. It could mean a collective increase of £200 million in 2015 if the government do not agree on a business rate cap. The article states that the economy cannot sustain a freeze on business rates and that they must be diverse as the customer and are located in different places and in increased but campaigners are trying to persuade the government different ways. The structure of the retail sector could be to put a 2% cap on the increase so that the effect on their examined more closely though by looking as retail size and businesses is not as drastic. Retailers feel that the current profitability. By looking at it in more detail using PESTLE analysis taxation system is out of date and that they would feel gives a better understanding of each sector as external factors can comfortable with a 2% freeze. A dramatic increase in rates could have a big influence. I will look at six key areas, political force some smaller retailers out of business such as those who are economic, social, technological, legal and solely owned yet a freeze could cost the environmental.

UK treasury up to £1 billion a year. The rise in business rates could affect The political factors are what are businesses abroad considering expansion happening politically in the environment within the UK which ultimately has a in which the retailer operates and could knock on effect on globalisation. More include areas such as tax policies, start-­‐up businesses may also reconsider employment laws, environmental “Saeed Nahass spent decades building and also head abroad for more regulations, trade restrictions and reform up his business in Syria but it took just reasonable business rates and economic on imports and exports, tariffs, VAT and growth. The modernisation of UK political stability. Currently Syria is in the months for the civil war to devastate business rates would make the UK look middle of a civil war which has halted his work. One of the machine–tool more attractive to outside retailers and in imports and exports to and from the factories and an office were destroyed the long term stop the UK from turning country. Syria produces oil and textiles by regime bombs; another was robbed into an economic decline. and both of these industries have been

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s you can see the whole structure of the retail industry has become more complicated over the years as retailers have more opportunities and ways to provide for customers than ever before. Retailers are now as

Syria’s exiled businessmen set up shop in Southern Turkey

severely affected. Well educated Syrians by renegade rebels. Debtors defaulted Social factors that can influence retailers who were being counted on to move the can include what is occurring socially in on about $450,000 they owed him. country forward have started to move the markets in which you expect to Sales dried up. Since moving to abroad and so there are no qualified operate. It will include cultural norms people to rebuild the infrastructure. south-eastern Turkey, he has managed and expectations, health consciousness, Many productions companies are moving to relaunch his business and make it population growth rate, age distribution, their sites to Egypt or Turkey as a result career attitudes and emphasis on safety. thrive again”. and investment in the country has The individual consumer will now also decreased by half from 2010 to 2012. www.ft.com drive fashion change as our society has This has a direct impact on the textile become more concerned with being industry as retailers now need to look for personally fulfilled. Customers use social production to continue in other countries and finding another media sites like Facebook and Snapchat to create a statement reliable supplier. Production in another country may come at a about themselves. In previous years the Government, family and higher price which would need to be taken into account. This religion would have been more important than what the could affect the cost of the finished product being sold to the individual customer wanted. The ability to create your own consumer in the UK. The consumer may not want to pay an identity and create a “me, me, me” culture online enables people increased cost for a product which is not of better quality and may to make their own fashion statements and creates a more diverse look at the retailer’s competitors to buy their products from. culture. With people being able to create their own identity, brands such as Vivienne Westwood have picked up on it and The economic factors that happen include the economic growth turned it into a catwalk trend. They used the punk trend to create and decline. It will include interest rates, exchange rates, wage a collection which was influenced by street style. This is known as rates, minimum wage, working hours, unemployment, credit “trickle up”. Androgyny also has an influence on fashion change availability, cost of living and the recession. Currently there is a

as the demand for unisex products increases. Men’s and women’s we dress as we now have access to a wider range of products and tastes have now converged and brands such as Doc Martins are styles and you may notice that students in Asia dress very similarly now creating products that are unisex. The democratisation of to students in the UK. As more people have the chance to travel it fashion is another driver of fashion change as the growth of very increases consumer awareness of products and styles. The exclusive brands is accepted into the globalisation of brands has also led to mass consumer market. Brands such as more competition for the brands Gucci and Prada have become more themselves to stand out and attract the common and it is more achievable for consumer. The internet, social media, more people to own such products. The film and TV is accessible almost luxury brand Hermes is now selling anywhere. This increase in media “Recent inflation figures mean rates trainers to appeal to a larger more casual communication allows people to will rise but trade bodies are now market. I found an article in Drapers communicate all over the world very calling for a cap rather than a freeze”. magazine which talked about how kids quickly. This instant exposure to other wear brands are now producing adult ideas, styles and cultural influences can www.drapersonline.com range clothing in a mini me style with be interpreted on the catwalk and then River Island being the latest brand to join interpreted by fashion retailers and sold the mini me revolution. Fashion shoppers are now more educated in stores within a matter of weeks instead of months. Zara is a than ever before with what is in and what is not. They follow a great example of this. Due to greater media communication, celebrity culture and can get closer than ever before to their global brands can be created and consumers can get information favourite celebrities through social media. Celebrities have helped on brands through the internet. Due to the amount of to encourage the “me, me, me” culture and some have started information being so accessible to consumers, a brand may decide dressing their children in to rebrand to make it miniature outfits of their better and have a fresh own. It is almost a natural start if their current image progression for kids wear is not working very well. to be influenced by §adult The increased pressure on clothing as before it was consumers lifestyles also very lazy with cheaper links back into technology looking logos and princess as brands make clothing style dresses. The River which are easy to wear and Island range for 2014 offer easy care garments included 3D flower which are easily washed. embellished dresses and Clothes tend not to be tropical print t-­‐shirts, very made to measure and are similar to the adult ranges more unstructured. The that are available. casualisation of clothes has come from the need of Technological factors are consumer convenience. what are happening with Consumers have less time RIVER ISLAND MINI ME RANGE technology that can available to shop these impact what retailers do. days and so they find new As technology is moving forward very fast, retailers must look ways of shopping to make their lives easier. The use of internet forward to the future and keep up with the advances. Things that and shopping from mobiles has increased and so brands have had were not possible 5 years ago are now possible with mobile to develop this side of their brand to react to consumer demand. technology and advancements in web, blogs and social media.

Brands understand that consumers do not wish to wait around to New technologies will always develop and may create barriers for make purchases and so self-­‐checkout is available in many stores retailers as they will need to consider financial implications of new and interactive shopping displays are available. An article in technology. Technology also drives fashion change through the Drapers magazine related to production methods and materials. technology as it talked about how Computers can generate prints and customers are using their mobile different materials with different phones in stores to check prices of finishes. We also have the competitors, which is known as technology now to create garments “showrooming”. Retailers do not that are easier to care for and want the consumer to find the require less maintenance such as product cheaper elsewhere and “non-­‐iron”. With technology the leave the store but it is difficult to manufacturing speed has also see what the customer is doing on increased and also the quality of the their phone while they are in store. production but also there are new The article relates to the use of Wi-­‐Fi methods of manufacturing such as in stores and suggests that more HUGO BOSS EASY IRON laser cutting and garment welding. stores should offer free Wi-­‐Fi to Due to changes in technology and the increase in social media, consumers so that they can monitor the sites that they use whilst fashion is now more accessible throughout the world and brands in store. 80% of fashion retailers do not offer free Wi-­‐Fi in stores are now opening abroad when in previous years they may not and are missing out on a great marketing opportunity as if the have been able to. The globalisation of brands has effected how customer signs up to the free Wi-­‐Fi, they are able to collect

Retailers face dramatic rise in business rates

consumer data which they could then use in the future to contact the customer and encourage them to come back.

The legal factors are what is happening with changes to the legislation for example new laws for working hours on a Sunday, the law for minimum pay, copyright and plagiarism, illegal labour, access to materials, resources, import and export restrictions and charges and taxation. An article in The Guardian published in February 2014 exposes Bangladesh garment factories for exploiting child labour for UK products. It was found that girls as young as 13 were forced to work 11 hours a day in unsafe conditions despite a factory collapse that killed 1,130 people just last year. Retailers such as BHS, Lee Cooper use these factories were the workers were physically abused and fire safety precautions were ignored. Revelations like this are an embarrassment to any retailer who produces products in these factories as it cripples their reputation with the consumer. An article like this can impact the consumer greatly who may decide they want to shop with another retailer who looks after their factory workers and offers better working conditions.

“Despite promises made by retailers to improve conditions following last year’s Rana Plaza factory collapse in Dhaka, where at least 1,130 people died and thousands more were injured, staff as young as 13 are filmed in factories being kicked, slapped and hit with a used fabric roll as well as abused with physical threats and insults”.

concern and interest in this topic has affected brands so that they develop their clothing in a way to appeal to the healthy consumer.

For example the retailer may use UV protection in swimwear or breathable fabrics for fitness purposes. Some brands offer a free gym pass with certain purchases while Monsoon offer Fairtrade, organic and ethical clothing. An article from the Telegraph talks about how the Fairtrade brand has evolved to become more style friendly and fashionable. In previous years it has been very important but never what you could call “on trend”. Everybody knew how important Fairtrade was to the people in the poorer countries but it wasn’t a highly bought item within fashion and tended to be more popular with food products. Fairtrade have now appointed some high profile designers to use Fairtrade cotton in their designs. Dolly Jones, the editor of vogue.com agrees with the changes being made.

“Ethical fashion works when it offers style first and its ethical advantages as a secondary benefit.

That way, people will be prepared to pay the higher prices” DOLLY JONES – EDITOR OF VOGUE.COM It has gained support from the British Fashion Council who is encouraging brands like Burberry and Vivienne Westwood to get involved. All of this effort would go to waste though if our existing high street retailers such as M&S, John Lewis, Debenhams and Topshop were not taking part. The designer of denim at Topshop has implemented a range of Fairtrade cotton shorts, jeans and jerseys but thinks that more could be done.

The Guardian – February 2014

Annie Greenabelle – Ethical brand sold at Topshop

BANGLADESH FACTORY COLLAPSE 2013

The environmental factors are what are happening in respect to ecological and environmental issues. Many of these factors will be economical or social in nature. They could include customer values, management and staff culture, EU factors, fair trade, sustainability and global warming. The health and well-­‐being of people will effect fashion change. In the modern world it is very important for people to keep fit and be healthy. The consumer

By brands working together to make Fairtrade a standard factor when making new products, the people who are manufacturing the products in other countries could benefit from a better way of life. More environmentally friendly brands are coming to the forefront of fashion now with brands such as People Tree being noted in Drapers for their hard work and awards. A new brand called Vivobarefoot has taken an eco-­‐stance on the production of shoes by using locally sourced and recycled materials all produced in ethical factories. With wholesale prices ranging from £18-­‐£90 it is an affordable venture that more stores could encourage.

Another external factor such as the weather could have an impact on retail areas. If the weather is very bad, consumers will feel more encouraged to go shopping in an area with shelter such as the Trafford Centre or Arndale Centre over an area which is out in the open such as Church Street in Liverpool. Retailers may consider setting up shop in these areas over open areas especially in the UK, as the weather is so unpredictable.