PESTLE Analysis for SelfridgesPolitical Due to Selfridges selling

P.E.S.T.L.E Analysis for Selfridges

Political:

Due to Selfridges selling lots of imported items from China, Italy or America as they are a clothing retail store political effects could include Quotas meaning Selfridges would only be able to import a certain amount of products therefore limiting the amount of products they can sell. Tariffs can also affect the way that Selfridges operate as if the domestic government increases these taxes or the government form who Selfridge’s imports from raises tax then it will be cost push inflation as Selfridges would charge the customer more opposed to take the cost on themselves.

With this rise in cost would come a small fall in demand as items in Selfridges are already price inelastic as they are designed and tailored for the high end market who do not care so much about a fall or raise in price.

Economic:

Selfridges is a clothing store which has mixture of middle to very high end clothing or designers it’s often visited by celebrities that have a lot of discretionary income.

If the economy was in a good form and they was low employment with rising wages then Selfridges would benefit from this as people would have higher confidence and therefore spend more on luxury items like clothing or jewellery. The love for fashion had been increasing over the past few years with the rise in online retail it has become more accessible for everyone it is now estimated that the value of the fashion industry is about ?32 billion as of 2018 which is a lot and its only been growing since then.

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As you can see from the graph the sales for footwear specifically have increase with an annual growth rate of 10% and are predicted to carry on rising. This rings a lot of potential for Selfridges as they are in an expanding market therefore Selfridges has a lot more potential to expand within the future.

Social:

Fashion is forever changing and Selfridges need to keep on top of this if they don’t have appropriate representatives that tell them what clothes to buy then they can cut themselves out of the market. The population are becoming more and more influence by what they see on social media or the internet, a recent study concluded that 55% of the population are influenced by online review they see but a surprising 74% of peoples shopping habits are impacted by what they see on social media. Selfridges can benefit on this by promoting certain influencers with their clothing or advertising cleverly on social media and rising the awareness of their store.

Technological:

The use of physical stores is something that is beginning to become something of

Legal:

Environmental: