Analysis of Primark's Brick and Mortar Strategy: Market Report

This report provides a detailed analysis of Primark, a brick-and-mortar retail store. It examines Primark's market position, competitive pricing strategy, and strengths, such as its competitive pricing and wide product variety. The report also identifies weaknesses, including the lack of an online presence and quality issues. It provides a market analysis and recommendations for the company, suggesting that Primark should continue its brick-and-mortar presence, while also considering strategies to address its online presence. The report includes financial data, such as revenue growth from 2007 to 2017, and references to support its findings. This report is designed to offer a comprehensive overview of Primark's business operations and market performance.

Brick and Mortar analysis
Primark analysis

Running head: Primark analysis 1
Contents
Introduction......................................................................................................................................1
Primark market analysis..................................................................................................................1
Strength............................................................................................................................................2
Weakness.........................................................................................................................................2
Recommendation.............................................................................................................................3
References........................................................................................................................................4

Running head: Primark analysis 2
Introduction
With the increase in technology, many companies have entered in the e-commerce
market. It resulted in stiff competition in the online market. Due to this, many companies are
operating as brick and mortar only. Primark is also an American brick and mortar store, founded
by Arthur Ryan in the year 1969. It offers wide variety of products like clothing, accessories,
footwear’s, beauty cosmetics and confectioneries. At present, it is running its stores in multiple
countries like United Kingdome, Spain (Primark, 2019).
Figure 1: Primark store in America
Source:
Primark market analysis
Primark is using
competitive pricing
strategy to attract its
customers. It is offering
the products at a price
lower than its
competitors by
outsourcing the labor and
by using no marketing techniques. It is facing stiff competition from Zara and H&M because of
lack of online presence. It is also experiencing quality issues with its products because of
outsourcing.
Primark has 9 stores in America and 350 stores worldwide (Primark, 2019). The latest
store was opened in King Plaza mall in Brooklyn in America. It is further planning to open world
largest Primark store in ‘Birmingham’ by the year 2019. It is the fastest growing retail outlet in
the America. It has been successful in increasing its profits from the preceding years (Barrie,
2019) .
Primark’s revenue growth from the financial year 2007 to 2017 (in million)

Running head: Primark analysis 3
Source: (Statista, 2019)
Strength
Primark keeps the price of its products down by purchasing in wholesale. It has very less
involvement in advertisement and generally promotes its brand through ‘Word of Mouth’
marketing technique that ultimately saves the cost. It offers wide variety of products to its
customers. It has approximately 700000 employees all over the world (Primark, 2019). It has a
strong presence in America as it has opened nine stores since 2015. These strengths had helped
in increasing sales and profit of the brand yearly.
Weakness
 Primark major weakness includes that it does not sell its products online and it does not
advertise its product. It leads to its competitors (Zara, Mango) having advantage over the
brand. Its success is also hampered because of lack of online presence.
 It outsourced its manufacturing products from Pakistan, China that sometimes leads to
the development of inappropriate quality products.
 It suffers from the consumer perception that it is not trending with the latest style and the
low priced products are of poor quality and made for mass purchase.

Running head: Primark analysis 4
 It has also received controversies from the UK government for paying less than minimum
legal wages to its workers (Kendrick, Daft, & Vershinina, 2010).
Recommendation
Primark should continue to operate as Brick and Mortar presence in America because in
the year 2013, it has already tested out e-commerce presence through ASOS website. It has
resulted in fewer profit margins and thus it has developed a website for viewing and browsing
the products only. Hence, online selling may not be appropriate for Primark because of high
shipping fees and return cost and if it has to increase its sale by online channels than it must
transfer its return cost to the customers to gain effective profit.

Running head: Primark analysis 5
References
Barrie, J. (2019, February 27). World’s biggest Primark to open in Birmingham on 11 April. Retrieved June
18, 2019, from I News: https://inews.co.uk/news/consumer/new-primark-megastore-
birmingham-launch/
Independent. (2019). Penneys' American dream taking time to pay off as shares in owner ABF fall 15pc.
Retrieved June 17, 2019, from Independent:
https://www.independent.ie/business/irish/penneys-american-dream-taking-time-to-
pay-off-as-shares-in-owner-abf-fall-15pc-36463758.html
Kendrick, M., Daft, R. L., & Vershinina, N. (2010). Management. Cengage Learning EMEA.
Primark. (2019). About us. Retrieved June 19, 2019, from Primark:
https://www.primark.com/en/aboutus
Primark. (2019). About us. Retrieved June 19, 2019, from Primark: https://careers.primark.com/about-us
Primark. (2019). Primark. Retrieved June 17, 2019, from Primark: https://www.primark.com/en/
Statista. (2019). Primark sales figures: Primark revenue worldwide 2007-2017. Retrieved June 17, 2019,
from Statista: https://www.statista.com/statistics/383785/primark-revenue-worldwide/