Retail Theory and Practice: Strategies for Primark to Cope with Macro and Micro Environmental Changes

RETAIL THEORY AND
PRACTICE

Table of Contents
INTRODUCTION TO RETAIL INDUSTRY.................................................................................3
INTRODUCTION TO COMPANY................................................................................................3
RELEVANT CHANGES IN THE UK FASHION RETAIL..........................................................3
The strategies and tactics that could be used by Primark to cope up with micro and macro
environmental changes:...............................................................................................................6
RECOMMENDATIONS.................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
APPENDIX....................................................................................................................................10

INTRODUCTION TO RETAIL INDUSTRY
Retailing is one of the important aspect with regard to the economy because it involves
the sell and of products and services with respect to customers in order to meet their needs.
Retailing is the key aspect with an association towards the economy of UK.
In case of fashion retailing, clothing is the main business of UK. It is one of the most attractive
destination with respect to investment in the context of clothing industry. As the demand and
trend towards the clothing always be favourable and trending so UK's Fashion retailing industry
is counted as major and most important with respect to its economy. It also accounts for the
generation of revenue of 3.8 billion dollars in 2017 (UK fashion industry statistics, 2021). There
are various brands like Marks and Spencers, ASOS, Burberry and various others that are
associated within the retail industry of UK and plays a major role.
INTRODUCTION TO COMPANY
Primark is one of the most famous and fast fashion retailing fashion brand. Its
headquarter is in Boston, US. It was founded on 1969. It is an international fashion retailer that
sells large number of the latest fashion, beauty, and homeware products to its customers. It has
around 373 stores across worldwide including UK, Ireland, Germany, Africa and various other
countries (Blazquez, 2021). Its mission statement is to enable high quality fashion basic at value
pricing to its customers. Its main objective also includes to deliver the best quality clothing at
low prices. It performs its work as per customer need and demand. It works in the direction of
value for money. Apart from its physical stores Primark also operate its business at online and
digital platform wherein it makes sells of its products at 24*7. With the presence over the digital
platform it makes sales of its clothing and beauty products across various countries and grab
large number of customer share. Primark also follows the concept of Amazing products at
amazing prices. Through its online platform it performs its business operation and this has
enabled the company to enhance its sales and revenue shares.
RELEVANT CHANGES IN THE UK FASHION RETAIL
Macro environment:
It refers to the external environment that has a major impact over the companies and the
industries (Jelassi and Martínez-López, 2020Frue, 2017 ). It is an uncontrollable environment

because its factors along with its impact are not controllable with respect to the company. It is
very important it must be analysed by companies.
PESTLE analysis:
Political:
It is one of the major aspect of the UK retailing industry because it comprises of various
aspects and changes in the form of policies and rules. It includes the rules and concerned policies
(Shtal and et.al., 2018). With the impact of Brexit the UK' s trade and practices are being
affected and the restriction that was imposed with the Brexit has affected the fashion industry at
large. This is also brought impact towards the Primark in terms of affecting its sales and revenue
operation. In the same way the lockdown with regard to Covid pandemic along with its trade
restrictions has impacted the business of Primark and the entire industry.
Economic:
With regard to UK the manufacturing of clothes are expensive and hence most of the
companies try to make production in other countries in order to reduce their cost of production
and make avail their products at low prices (Rahman, 2021). However, with regard to Primark
the concept low prices with the availability of high quality products works favourable with
respect to this factor. But on a overall basis the impact of this factor towards the industry is not
favourable.
Social:
social factor is related with the customer taste and preferences (Thompson, 2019).This
factor is highly favourable with regard to the fashion retailing industry. This is because there is
high trending and demand of fashion with regard to the economy of UK. Various fashion events
and the presence of Universities and college along with the demand of people with respect to
fashion clothing has a positive aspect and impact towards the fashion retailing along with
Primark.
Technological:
This is also an important aspect with regard to fashion and retailing industry. This is
because with the introduction of digital technology and digitalization, the trend of e-commerce
and e-marketing came into effect and has positively supported the industry. In the same way with
the adoption of digital concept and digitalization the business operation of Primark is also
positively impacted.