Macro Economic Analysis (PESTEL)


-The store fronts of Topshop have seen a few protests in recent years, a topic of protest in 2015 was over the mannequins used in store, shopper Laura berry posted on facebook saying that Topshop using above average height and super skinny white mannequins shows “a lack of concern for a body conscious youth”, promoting to all ages that this is the ideal body type for the clothes they sell, an article by The Guardian claims after protests Topshop responded saying the mannequins are “stylised to have more impact” denying claims they were trying to promote the perfect body image
-There have been numerous headlines about current owner Phillip Green’s tax habits, according to an article from Channel 4 News he is known to channel money from his Arcadia Empire to an offshore vehicle registered to his wife’s name in Morocco, which she received tax free. This practice is technically legal however with his presence in the UK high street being so big this is a controversial business strategy, 10 years after this news came out it was found that Green’s company did not sign the ‘Ethical Trade Initiative’ it came up that he gave himself £1.2billion dividend in a year, the same year that he refused to pay the London Living Wage to those working in stores and offices in the city, Major Boris Johnson commented to the Huffington Post “It’s not morally right, it’s business sense.”

- According to a Mintel report 35% of Topshop’s consumer live in big cities, this is the largest percent out of all areas, this shows that their target market is pretty spot on with wanting to sell clothes for a big city lifestyle, however they are losing out somewhere in recent years, to other brands in terms of visiting regularity, in another Mintel report it was found only 8% of 1008 women shopping in store at Topshop as their first choice, and 3% using Topshop's online store first. 

-Topshop saw a 4% increase in 25-34 Year old shoppers in 2017, meaning they have to potentially put more focus on reaching a higher aged demographic than their target consumer, Design director Anthony Cuthbertson decided to expand the boutique line to meet the styles and needs of 25-34 more closely due to this increase. 

-Phillip Green is known for his sexist behaviours but a blunder he made in 2018 caused the brand to have to make a public apology to stop the boycott of the store, this came after a pop-up to promote a book on female rights and feminism was shut down by Green after he saw it “Objected vigorously” and to have it in his shops immediately, this sparked outrage over his public dispute of feminism especially when Topshop sells T-shirts with the slogan ‘Feminist’, this is when the hashtag #PinknotGreen started circulating reported The Guardian.

-This news came Not long before it was found out that Topshop Owner Sir Phillip Green had been named as an subject of sexual harassment accusations as part of the #MeToo campaign.
-Topshop is not known for being an inclusive brand, sales could be lost to this aspect as from a mintel report conducted in January 2018 about what makes women choose which retailers to buy from 25% of 942 voted for a brand that use models representing average people and 9% said they would pick a retailer if they used an add campaign with an empowering message, these stats come at a time where body positivity has a bigger market than ever before and self love is becoming more widely accepted, more and more people want to feel acknowledged by a brand rather than feeling like they don’t fit the brand and the aesthetic of the models.

-62% of 146 people asked in an Instagram poll said they prefer a brand when it has a bigger social media presence, however 81% said Topshop’s online media marketing is basic. Having a basic aesthetic causes a brand to be overlooked next to some of the dramatic styles used by competitors. 

-In a Mintel Report 3% of 1008 women shopping online used Topshop however 16% used online only retailers such as Asos and Boohoo, this report also showed that 14% would shop online at New Look, one of Topshop’s High street competitors, 11% more than would shop at Topshop. 
-The growth in popularity of social media has seen a shift in how brands become popular and the way they market themselves. Social media allows the consumer to be in control of what sells, trends grow due to what consumers want, this pattern benefits smaller and online based retailers allowing a bigger platform for these brands to make their move, hence creating bigger presences for themselves online than large organisations, it's this way that we see smaller brands becoming more popular, if a brand gets noticed on social media it is likely it will have a surge in growth.

-A 2017 fashion footprint report conducted by Arcadia group themselves showed that there was no thought on using eco friendly manufacturing methods or materials and no sign that Topshop thinks about ways to reduce its carbon footprint.

-Topshop is a fast fashion brand, fast fashion brands are harmful to the environment as their aim is to make clothes cheaply and quickly as well as making it disposable fashion for a quick turn around.
-Makes an effort to recycle 95% of waste and watch water usage in all UK Stores.
-Topshop is a member of the ‘Better Cotton Initiative’ which aims to source cotton in a healthier way however the is no way to know how much of the cotton Topshop uses is “Better cotton”.

-Phillip Green paid for the silence of his alleged abuse victims and paid a gagging order to keep his name out of the allegations, it has been found that there was a “repeated use of the agreements that have been used to cover up allegations of sexual harassment and racial discrimination” MP Jess Phillips says in an interview for The Telegraph. 

- Multiple headlines over labour scandals, the most recent linked to beyonce’s Ivy Park where workers were paid 44p an hour £4.30 a day in sweatshop conditions in Sri Lanka, similar to allegations linked to Kate Moss’ many Topshop collaborations.






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