PESTLE Analysis of Marks and Spencer. M&S (Marks and Spencer) is a British retail multinational brand. Michael Mark and Thomas Spencer established the retail company in 1884. The headquarter of the retail brand is situated in London, England, UK.
Some of the main products and services of M&S are as follows;
- Home Products
- Edible and food products
- Casual wear
- Hosiery items
Key statistical facts and figures about M&S are as follows;
- Approximately 78,000 people are working for the company to manage its global operations
- M&S’ annual revenue was 10.885 billion British pounds b the end of 2022
- The net income of the retail brand was 309 million British pounds in 2022
Some of the top competitors of Marks and Spencer are as follows;
- Aldi UK
- Waitrose & Partners
- John Lewis Partnerships
Today, we’ll discuss the pestle analysis of Marks and Spencer. It is going to focus on external political, economical, social, technological, legal, and environmental factors impacting the retail brand. Here’s the pestle analysis of Marks and Spencer as follows;
Political Factors Impacting Marks and Spencer
Some of the key political factors in the pestle analysis of Marks and Spencer are as follows;
The Brexit (Britain out of the European Union) deal has allowed the UK to get out of European; the deal has had a great impact on Marks and Spencer. It is because the company used to employ European workers and they would settle to work at low wages. It has changed the trade and tariff policy for the UK; now the company can’t freely move its supplies and goods to other European countries.
The trade and traffic policies of different countries are different. Some of them have got strict regulations and impose heavy duties and paperwork; the others give a free hand to international businesses and companies. The Brexit deal has restricted the free access of M&S in the European market.
Economical Factors Affecting Marks and Spencer
Some of the main economical factors in the pestle analysis of Marks and Spencer are as follows;
Various financial indicators like employment rate, exchange rate, taxes, inflation, and interest rate; play a significant role in the growth of businesses and companies. When the unemployment and interest rate is high, it decreases the purchasing power of people, and the company’s sales drop. The global economy is going through a recession period, and it has impacted the sale, growth, and profitability of the company.
Offers & Deals of Competitors
The consumer market is highly cautious about price; discounts and package deals easily attract their attention. There are various competitive stores and supermarkets offering different types of discount package deals, and they have attracted a lot of M&S customers. It has put a lot of pressure on the company in terms of finding cheap suppliers and finding a cost-effective method of products and manufacturing.
Social Factors Impacting Marks and Spencer
Some of the key social factors in the pestle analysis of Marks and Spencer are as follows;
Busy life and economic pressure have increased the trend of consuming fast food and readymade meal. Technological development has made speedy cooking possible with the latest tools and equipment. The readymade food market offers a great opportunity, and it would help the M&S brand to capitalize on it and win the market share.
M&S is a well-experienced brand and the company is operating its business in the UK market for the past 140 years. Experience is good that people are familiar with your brand because they see M&S products in their daily routine life. However, the problem is that young people consider your brand old, and the new brands easily attract their attention. That’s why M&S is not trending among young consumers.
Technological Factors Affecting Marks and Spencer
Some of the main technological factors in the pestle analysis of Marks and Spencer are as follows;
The trend of online shopping and home delivery service has increased significantly over the past few years. In order to catch up with the latest trends, Marks and Spencer has invested a lot of resources in the development of e-commerce. The company offers a wide variety of products online like clothes and apparel and delivers customer orders to their doorstep. However, M&S doesn’t deliver food and edible items like other food brands.
Self-Service and Checkouts
Self-service kiosks and self-checkouts are the latest technological trends for offering a better customer experience. This technology would remove the waiting time at the cashier; self-checkouts would smooth the transaction experience. M&S has successfully implemented this technology at its stores to offer a better customer experience.
Legal Factors Affecting Marks and Spencer
Some of the key legal factors in the pestle analysis of Marks and Spencer are as follows;
Health & Safety Regulations
While renovating the store M&S, some construction tiles and other materials fell on the street claimed to be causing cancer. The company turned a blind eye to the issue and it fell under the category of the Health and safety regulation Act 1974. The lawsuit imposed a fine of 500,000 pounds on the M&S brand.
Environmental Factors Impacting Marks and Spencer
Some of the key environmental factors in the pestle analysis of Marks and Spencer are as follows;
M&S has a clear-cut stand on environmental issues and the company has strongly committed to the safety of the environment. There are various industrial practices like the production of food, and clothes processes, and production poses a serious threat to the environment. However, the focus of M&S is on producing recyclable and sustainable products.
Marks and Spencer launch a “Green Policy” by the name of plan-A, and it focuses on the safety of the environment, people, and societies. The retail brand has partnered up with the world’s leading environmental organizations for the growth and development of sustainable practices and methods of production like cotton processing, removing fat from food items, and various other concerns.
Conclusion: Marks and Spencer PESTLE Analysis
After an in-depth study of pestle analysis of Marks and Spencer; we have realized that M&S is the world’s leading retail brand. If you are learning about the internal and external factors impacting the company, then you should keep in mind the abovementioned factors and points.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.