Effects of External Environment on Retail Business

Executive summary The retail industry is one of the biggest industries across the globe. It has many environmental factors that affect its profitability and its survival in the long term. The environmental factors include a wide variety of factors, but the following segments are deemed critical in determining a family clothing store's profitability. Many factors, including gender, mostly influence the demographic segments in family clothing stores; this shows that these stores could stand to make more sales by catering to the gender most likely to shop most. The economic segment also plays a key role in determining the success of a retail store. This segment shows the relationship between the unemployment rate and consumer purchasing power. Since income is the key determinant of a customer's shopping expenditure