A PRESTCOM analysis.

A PRESTCOM analysis
Political Factors
In June 2016, a voting was happened in Britain to leave the EU and it was clearly
observed that it will impact the political as well as economic uncertainties. After
Brexit, there was a increase in political distraction across the UK and their Prime
minister David Cameron has resigned at the same time. Nicola Sturgeon was the
Scottish Prime minister at that time and he started calling for the second Scottish
independence in order to safeguarding the interest of Scottish in EU.
Regulatory Factors
Because of Brexit, there was a high level of uncertainty regarding businesses like
Primark that have operation in Europe. But Primark even after getting so many
benefits fell against Euro and Dollar because of Brexit. Parent company of Primark is
ABF declared the decision to leave EU resulted in uncertainties related to business
environment as well as financial markets. ABF has also stated that there is an
opposite transactional impact on the profit of Primark’s UK sales even in the next
year if Britain eaves EU.
There are many employment regulations that create a high impact on retail clothing
industry in UK like introduction of new workplace Pensions legislation that applied
some regulation related to compulsion for all the companies to contribute 3% to the
employee’s workplace pension for British workers.
Economic Factors

 Because of Brexit, value of Pound shifted to the lowest against the dollar
because of financial issues. It has also created a lot of pressure on London as
it was considered as a financial hub of Europe that possess many investors
like assets threating in order to pull money from property funds.
 There was an indication from the Associated British Foods that UK
referendum decision to leave EU has created many uncertainties in financial
markets and business environment, so it is also weakening Sterling since
referendum vote has some positive aspects. For example, there will be a
benefit to the retailers like Primark as well as the other clothing retailers for
financial year if current exchange rate will become stable.
Social Factors
 Plus Size Fashion- There is a high increase in obesity in people of UK and
ageing population. UK is known as “Fat man of Europe” as most of the people
there are overweight. Every 7 men out of 10 and 6 women out of 10 are
overweight. Every retailer does not have plus size stock, so it creates an
issue for obese women and they avoid shopping because they do not get the
clothes of their sizes. There are some big retailers like Zara and Topshop that
do not sale plus size clothes and rising obesity leads in major gap in
opportunity for these retailers. They can easily increase their sales by selling
plus size clothes. Primark should also start investing in plus size clothing
options (Teague and Donaghey, 2018).
 Ageing Population- As per National Statistics, there is a drastic change in UK
population and labor dynamics because of ageing population. Most of the
people are aged in the country. There is a double- digit growth in the number
55-64 in 2019 and with 65s getting closer are almost fifth of the population in

UK. But by increase in ageing population, there is an increase in business
opportunities because consumers in pension age have high incomes because
they sustain a long as an employee and earn big amount of disposable
incomes. Most of them use to buy clothes from online apps and websites and
it clearly shows that it can bring so many growth opportunities.
Technological Factors
As we all know there is a high development as well as growth in e- commerce and it
also bring a very high market competition to traditional businesses in UK clothing
business. There is a start of many online selling websites like Amazon, Boohoo and
Asos. There is an involvement of low cost in this business and it also gives highly
competitive space. It is a clear fact that traditional Brick and Motor clothing retailer
like Primark does not have any e- commerce website and it leads in declining the
store sales because technological development of mandatory to sustain in the
competition.
Environmental Factors
There is a trend that had been prevailed in UK clothing retail industry. There is an
increase in ethically and environment conscious customers that expects firms to
adopt good practices to save the environment like use of recycled material as well
as paper packing. There are many big players like H&M that already started
sustainable clothing range that is made up of organic cotton and other material that
is totally environment free. There is a high pressure from the Government in some
countries to adopt proper waste disposal practices. Organizations that does not
follow the applicable standards has to face impact of penalties (Takasaki, 2012).

Competitive Factors
There are many big clothing retailers that are giving very high competition to
Primark like H&M and Mother care. They have adopted different techniques for
achieving target growth and fulfillment of objectives. Some of the competitors are
growing because of online selling and some have adopted attractive techniques to
attract customers. It is necessary to bring innovative practices to sustain in the
market competition. Primark is known for its low prices and it can easily grab higher
market segment. It provides a very strong competitive advantage to the
organization.
Organizational Factors
Primark has a very good working environment for the workers and employees. It
ensured the satisfaction of employees and they work in a healthy environment. It
has many teams involved in different operations and top-level management of the
organization ensures that every task will be done in the best possible way. Primark
stores have a store manager and in bigger branches, there are different level of
managers.
Market Factors
Primark has a good market share and it is growing day by day. Primark is known for
its affordable clothing range, so the target market is big for the brand and it has a
large number of loyal customers base. There are opportunities for the brand to
expand its operations as market acts as favorable for Primark.