Executive SummeryThe retail sector is a very important part of the world economy. “Variety can be classified according to different levels of service and generally falls into one of the following categories: discount department stores, wholesale clubs, supercenters, hypermarts and the so-called category killers” (Variety Stores). A retail business operates in a fixed market position selling goods and services to consumers. The retail industry purchases goods from the supplier in large quantities to supply them to consumers and make a profit. This could include anything from the consumer product to the delivery of products to consumers. PESTLE Analysis Political Change in politics sometimes affects national and international companies. However, the retail sector has benefited from the US-Asia free trade agreement. This gave the US market the opportunity to expand and make huge profits. Economical The United States is the number one consumer in the global market. The global market is highly dependent on the US market. Thanks to the free trade agreement, the US market has grown rapidly. Furthermore, the market was able to provide goods at low cost, encouraging sales growth and increasing profitability. However, the current economic situation may slow down the growth of the sector due to the continuous increase in the price of crude oil. This affects the entire industry. Furthermore, the increase in oil prices affects consumers because the cost is passed on to consumers. Social Knowing the needs and wants of the consumer is necessary for the industry to be successful. However, not understanding customer needs could potentially damage the company's market share. TechnologyThe opportunity to...... middle of paper ......to strength is also the most important strength that the industry needs to always keep an eye on. If there was a change in the external environment, it could harm the entire industry. To avoid these things, the industry must constantly monitor the external environment and have a backup plan for changes that may occur. Reference Important part of retail business. (n.d.). Retrieved from http://ivythesis.typepad.com/ topics/2009/01/important-part-of-retail-business.htmlGlobal Powers of Retailing 2011 (nd). At Deloitte. Retrieved June 10, 2011, from http://www.deloitte.com/assets/DcomGlobal/Local%20Assets/Documents/Consumer%20Business/dtt_globalpowersoretailing2011.pdfVariety Stores. Encyclopedia of American Industries. Online edition. Retrieved June 10, 2011, from the Business and Company Resource Center. (I2501400716).