The retail store is the outlet from where the people can buy the products and goods and they can also get the services from that fixed location like departmental store, boutique or kiosk. The customers can also give order on telephone or online for the purchase of their products. You can watch different types of the retail products, which are available at grocery, electrical or electronic products, bakery products, general, cosmetic hosiery and jewelry stores. The PESTEL analysis can help to understand the opportunities of the businesses and help the businessmen to start their business activities at any particular place.

Political Factors

The government forms number of laws and regulations to carry on business activities. The political activities in the country can affect the running position and also the sale and purchase of the retail products in any specific market. There are some trends in the retailing and shopping of the products, are dependent on different national debates and the initiatives, which the government takes through its political process. The politicians and the government have effects through their exercise of power on the retailing system and government controls the supply chain of the retailing products (Professors Steve Burt and Leigh Sparks, 2003).

The retail industry has to face various challenges in the political sector like environmental regulations and its protection, interest rates of commodities and monetary policies of the country, tax policies, consumer protection, employment laws to safeguard the rights of the employees, contract enforcement law, political stability, which needs to consistent supply of the commodities and safety regulations, which can affect the business directly (Abhi Jeet S, 2010). 

Economical factors

If the economic situation within the country is strong, then the flow of the household articles and retail business will be smooth. The retail business heavily depends on the effective supply of the products. When the government has made proper regulations for the supply of retail products, then the economic structure of the country will have great effect on the supply and demand of the retailing products. The interaction of political will of government and strong economic situation in the country are important for the smooth and affluent supply of the retailing products (Professors Steve Burt and Leigh Sparks, 2003).

The situation of economy has direct impact on retail industry. The retail businesses are affected with the change in the economic stabilities of the country, change in rate of foreign exchange and the economic recession, as the buying habits of consumers are also changed and the sale and profit of retail industry is also decreased (Analytical Papers, 2015).

Social Factors

The social change and the current lifestyle have created various changes in shopping and retailing business. Now the attitudes and wants of the clients have been transformed and their habits are also changed. They are more educated and well aware of the changing atmosphere of the retailing business. They like the branded products with logo of the multinational brands and like to buy these products at the highly subsidized rates. Now retail items are available in packets and vegetables are also available in the packages, which are considered more safe and healthy for human use (Professors Steve Burt and Leigh Sparks, 2003).

There are different social norms like income distribution, demographics, age distribution and rates of the population growth leave direct effect on this business. Due to massive educated population, their social awareness, leisure and career attitudes and entrepreneurial spirits brought many changes and the buying habits of clients are now shifted. The retail industry has also changed itself and now all retail products are available in excellent and durable packing, which has grown its shelf life (Abhi Jeet S, 2010).

Technological Factors

As this is the time of technological changes and it has changed all aspects of life. The use of technology in retail industry has developed it and new inventions and development have been made in this industry. New and latest technology is used in most of its products and the retail industry has developed its websites and receives order online. They provide the products in excellent packaging, purified from dust and pollution and you can also check the demand and supply of the products in the market (Abhi Jeet S, 2010).

Technology is introducing in every sphere of life and new technological developments have created special place in business sector. You can use new technology in buying, selling and weighing the products. You can introduce your products to the people through online shopping give their details with specific information. The clients visit their site and compare the quality and rates of the retail products then they can make their buying decisions. New technology has developed the minds of people and it brought them closer to their retail industry and people visit the specific retail stores, which have great outreach of their business (Analytical Papers, 2015). 

Environmental Factors

The retailers also use different forms of energy and they also become conscious about the environmental changes. The products provided in the retail shops are mostly grown or prepared in this environment and they are also affected with the changing trend of environment so they can affect the health. Government imposes ban on use of various sprays and gases over the food products, which are sold in these retail stores. The use of some chemicals can cause eruption of various diseases. The retail business should follow the environmental laws and regulations, which are made to protect the lives of the people and ensure the rights of consumers and employees (Professors Steve Burt and Leigh Sparks, 2003).

Legal Factors

There are various legal factors, which has affected this retail industry positively and saved it from manipulation and other smuggling of the products. The government has imposed various legal implications to check the illegal trafficking of retail industry products, which can create scarcity in particular area and the prices of such products go up. The industry has to follow the consumer protection law and policies as well as the law for protection of rights of the labor. This industry has to follow the environmental regulations in order to keep the environment clean and ensure its safety. The government also changes the rules and regulations from time to time ensuring timely transportation of the products and makes them available to the consumers (Analytical Papers, 2015).


Professors Steve Burt and Leigh Sparks (2003), Competitive Analysis of the Retail Sector in the UK, available at
Abhi Jeet S (2010), Pest Analysis on Retail Industry, available at
Armaan Anand (2014), Pestel in Retail, available at
Analytical Papers (2015), PESTEL Analysis for Retail Sector, available at

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