PESTEL ANALYSIS

P: 

As Britain attempts to leave the European Union, British companies would find it increasingly more difficult to purchase and distribute fabrics outside of the United Kingdom. The European Union is the UK’s largest export market for apparel and textiles, accounting for 74 percent of exports. Brexit would also mean it would be harder for companies to expand their companies worldwide as a result of free movement across Europe being jeopardised. A survey gathered over the time frame of three months found that 80% of people felt that Brexit would have a negative impact on Fashion in both the EU and UK.

E: Topshop reported that they had suffered a £10.9 million loss in 2017 compared to previous years when they were making a profit of around £59.4 million. This is potentially a result of their lack of interesting online presence with the ever-growing online shopping market. If Topshop doesn’t make a change to this then they could continue to lose custom, especially in younger customers which is actually their target market.

S: Sir Philip Green, a chairman of the Arcadia group has faced issues regarding claims of harassment. These allegations are detrimental to the sales at Topshop. One shopper told sky that if the allegations were proven true then they would take their custom elsewhere and stop shopping at Topshop and Topman. In addition to this, in April 2017 Topshop received backlash for their mannequins being too thin and promoting an unhealthy ‘ideal’ body type.

T: Technology is a huge thing in the fashion industry, it is used to boost sales, Topshop has both an App and a website that you are able to purchase their products from. As well as this they also have an Instagram account to promote their products. However, they are losing sales with online competitors such as Boohoo and Misguided who have a stronger online presence and are continuously growing. “Topshop has become a little less distinctive” (Richard Hyman 2017)

E: With fashion being the second biggest polluter in the world, Topshop contributes to this with it being a fast fashion brand. Topshop’s highest selling products is their jeans. It takes around 2,000 gallons of water to make a pair of jeans meaning just their jean sales alone brings about huge amounts of environmental issues.

L:  The Arcadia group have their own code of conduct guidebook. This is to ensure that all employees within the group and manufacturers are all abiding to the current fashion laws. This is easily accessible on their website and they ensure that everyone understands it.