Economic Factors in Retail

Curriculum Area & Level

Subject: Business Studies
Exam Board: AQA, Edexcel, OCR, or WJEC (adaptable)
Level: Key Stage 4 (GCSE)
Unit: Influences on Business – Economic Climate & Retail Sector

Lesson Objectives

By the end of the lesson, students will be able to:

1. Explain key economic factors affecting retail businesses in the UK.
2. Analyse the impact of inflation, interest rates, and consumer confidence on retail performance.
3. Evaluate how major UK retailers have adapted to recent economic changes.

Lesson Duration

Total Time: 60 minutes
Class Size: 30 students

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Lesson Structure

Starter Activity (10 mins) – Economic Headlines Challenge

• Display a selection of recent UK economy headlines (inflation, interest rates, consumer confidence).
• In pairs, students discuss what they think each headline means and how it might impact UK retailers.
• Quickfire class discussion: How could these economic factors influence retail businesses like Tesco, Primark, or JD Sports?

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Main Teaching Input (15 mins) – The Economy & Retail Businesses

Key Concept Breakdown:

1. Inflation & Retail Prices – How rising costs impact pricing, profit margins & consumer purchasing power.
2. Interest Rates & Borrowing – The effect on consumer spending and retail business loans.
3. Consumer Confidence & Sales Trends – How economic uncertainty affects shoppers’ willingness to spend.

• Engagement Tactic:
  • Use a ‘Dollar vs Pound’ challenge: Show price differences in common retail items over the past five years.
  • Ask: "How might this affect a retailer’s pricing strategy?"

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Group Activity (15 mins) – Retail Business Case Study

• Scenario: Students are given a role as business consultants for Greggs (or another well-known UK retailer).
• Task: In small groups, students analyse a worksheet listing key economic challenges:
  • Inflation driving up ingredients costs
  • Interest rates influencing business loans
  • Changes in consumer confidence affecting footfall
• Challenge: Each group must decide ONE strategy Greggs could use to remain profitable.
• Wrap-Up: A 2-minute ‘consultancy pitch’ from each group to the class.

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Plenary (10 mins) – Economic Decision-Making Debate

• Debate Setup: Pose the question:
  • “Should UK retailers raise prices to protect profit margins during high inflation, or keep prices low to encourage spending?”
• Quickfire Contributions: Students take sides and defend their position with evidence from today’s lesson.

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Exit Ticket (End of Lesson – 5 mins)

Students write one key takeaway from the lesson on a sticky note and place it on the ‘Economic Impact Wall’ at the front of the class.

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Differentiation

For Higher Ability Students:

• Ask them to predict economic trends and suggest business strategies in response.

For Lower Ability Students:

• Provide sentence starters in discussions and model economic reasoning using real-life examples.

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Assessment for Learning (AFL)

• Questioning throughout – Cold-calling students to check understanding.
• Group work feedback – Listen and correct misunderstandings in discussions.
• Exit Tickets – Review to inform the next lesson plan.

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Resources Needed

✔ Economic headline slides
✔ Case study worksheets
✔ Sticky notes for exit tickets
✔ Markers/whiteboard for debate

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Extension Task (For Early Finishers)

• Research a UK retailer that has successfully adapted to economic challenges in the past five years.
• Prepare a short verbal report for the next lesson.

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Teacher’s Reflection (Post-Lesson Notes)

• Which economic factors were easiest/hardest for students to grasp?
• Did students apply business and economic reasoning effectively?
• Which strategies worked best for engagement?

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WOW Factor: This lesson immerses students in real-world UK business challenges and helps them develop critical thinking by applying economic concepts to relevant, well-known retailers. The combination of debates, consultancy role-play, and interactive discussions will keep students engaged while equipping them with practical business analysis skills.