Recent History of Retail

1. Introduction

The purpose of this report will be to cover how factors in the external environment have affected and shaped the UK retail industry in the past, starting from the affect of the Second World War. The external or macro environment as it is commonly referred usually comes under six separate headings, Political, Economic, Social, Technological, Environmental and Legal or PESTEL.

1.1 Background

In the system theory a business takes inputs (resources) and produces outputs (goods or services). However it is also important to understand that an organisation does not operate in a Vacuum. It must monitor and act upon changes occurring in the outside world, or its external environment. A useful way for them to analyse these factors is to use the PESTEL framework as described briefly above (Britton and Worthington 2009).

It is also important to note that all six headings are interrelated and it can often be hard to pigeon hole some topics into specific categories.

1.2 Methodology

The information for this report has been gathered through various means, mainly through the use of academic books, and online journals, however online resources have also been used. A full list of materials used will be provided at the end of the report.

The layout of the findings will consist of each of the major relevant changes while constantly analysing the PESTEL factors involved with each point raised.

2. Findings

2.1 Recent History of Retail

During World War II rationing came into effect, due to shortages of imports because of German blockades. Ration books were distributed among the population with each person would get a fair share of food (Barrow, M. 2010).

“Fourteen years of food rationing in Britain ended at midnight on 4 July 1954, when restrictions on the sale and purchase of meat and bacon were lifted. This happened nine years after the end of the war” (Barrow, M. 2010).

This allowed people to spend their money on clothes and food as they pleased....