Key Changes in UK Fashion Retail and Primark's Strategies

This document discusses the key changes in the UK fashion retail industry and how Primark, a fast fashion retailer, is adapting to stay competitive. It provides an introduction to retail and Primark, analyzes the relevant changes in the macro and micro environment, and suggests strategic and tactical approaches for Primark's success. The document also highlights the skills, knowledge, and experience required in the retailing industry. Overall, it offers insights into the challenges and opportunities faced by Primark in the dynamic fashion retail market.

Primark Fashion Retail

Table of Contents
Contents
Introduction to retail........................................................................................................................1
Introduction to the company............................................................................................................1
Key relevant changes within the UK fashion retail.........................................................................2
Relevant changes with the micro environment................................................................................3
Suggest and discuss strategic and tactics that could be used...........................................................4
Recommendation.............................................................................................................................4
Reflective commentary....................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

Introduction to retail
Retailing includes the selling of the merchandise from a fixed location to the customers
directly in a small quantity. As retailers purchase different merchandise from the wholesalers of
the trade and commerce and then further provide it to the customers as from the shop or stores.
Retailing is the process of selling the different products and the services to the customers as from
the multiple channel of distribution in order to gain the higher profit or the earning (McColl,
2018). They satisfy the need and demand of the market by making the efficient supply chain. On
the other hand in fashion retailing as the once the clothes will be manufactured and designed that
further need to get sold in the market. The process through which the manufactured clothes will
be transferred to the customers in order to satisfy the need of the market that whole process is
known as the fashion retailing.
Introduction to the company
Primark is the fast fashion retailing company of Irish with headquarter in Dublin, Ireland.
It is the subsidiary of the food processing and the retail company named as ABF. Primark is
known by the name of Penneys in Republic of Ireland and this name is not used on international
level as it is owned by an American retailer named as J.C Penney. It was founded in 13 June
1969 by Arthur Ryan and as per year 2019 has 373 stores in different location. Primark served
different areas as like Austria, Belgium, France, Germany, Ireland, Italy, Netherland, Spain,
Portugal, UK, Slovenia and US. The current CEO and COO of Primark is Paul Marchant and
offers the diversified range of products and includes clothes and wear of baby’s and children’s,
menswear, women wear, footwear, accessories, home ware, confectionery and beauty products.
There are around 7800 number of employees that are working in Primark since 2019 and have
the revenue generation of £7.79 billion in 2019. Primark also has their own websites as
primark.com and from there they sale their products and services directly to the customers as
from the digital and online platform (Fernie, 2019). The first store of the company was still open
in 47 Mary Street, Dublin that was associated with the British food in 1935 that was found by the
Arthur Ryan. As after gaining the success in Ireland Company wants to expand their business in
UK and then opens the largest store in Belfast City Centre in 1971 and a store of Primark in
Derby, England in 1973.
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Key relevant changes within the UK fashion retail
PESTLE Analysis: It is an analysis that defines the macro-environmental factors that has
a direct impact on the productivity of the company. It includes those factors that resist or assist
the performance of the company in effective manner (Piotrowicz, 2019). It is used to measure the
profound impact of the environment of the different activities of the company. There is an
analysis that affects the working culture of Primark and it is as defined below as:
(Source: Porter's five force analysis, 2019)
Political: It is the cause that includes the different regulations and the rules of the
governance that is developed by them in order to prevent the preferences of the customers by
which they get the best and suited materials with reliable cost. As per the Brexit that is occur at
16 June 2016 in between the Britain and the European Union that has the adverse impact on the
political stability of the country. Primark has a lot of operations in the Europe as well thus ABF
make a decision to leave the European Union that creates even more unbalanced condition in the
financial market and the business environment of the Primark (Colombi, 2018). For these
Primark sales the different raw material within the local community that helps to reduce the
production cost of the company.
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Economic: It is the form that consist of the different nuances that is related to economy
generation of the country and includes different factors as like inflation rate, taxation rate,
taxation rate, import and export exchange rate, unemployment rate and many others factors too.
Thus as per the Brexit the pound rate become less as compare to the dollar thus that turns into the
lot of pressure and act as the threat to enhance the money by creating and developing more funds
in the market. Thus for these Primark gets an opportunity to develop more sales in the business
and they also provide the lot of job opportunities in the market that develops the better growth of
the business and the economy too.
Social: It is the factor that includes or defines the livelihood of the people of a particular
society. As from this factor it has been noticed that how much the society is developed in terms
of variability (Arrigo, 2018). It is the factor that defines the different state of market and their
market acceptability. UK is more stability and the diversity while the people were also is very
much attracted towards the new and the trendy clothes. UK is also known as the trend setter that
has provide a lot of profit to the company as there fashionable clothes has the wider acceptability
and it takes a lot of success and development to the Primark.
Technological: It is the factor that defines the different advancement that has been
accepted by the market in order to enhance the working standard of the business. For this
Primark gets a lot of profit as they implies all the advanced changes within the business as from
the machinery to the website usage. They use the advanced equipment that decreases the
production time rates and cost that has a lot of benefits to the Primark.
Legal: It is the factor that defines the norms related to the laws and acts of the
government that are followed by the Primark in order to generate more values and belief in the
market (Hauser, 2019). The recent legislation of the UK government that affect the Primark is
Workplace pension legislation in which it is mandatory for the Primark to make a contribution of
3% in the pension of the employees.
Environmental: This includes the controllability on the different factors that assist the
pollution. For this Primark uses the paper bags instead of plastic bags and works with
environment consciousness by reduces the carbon footprint.
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Relevant changes with the micro environment
SWOT Analysis: It is an analysis that defines the internal strength and weaknesses while
the external threat and opportunities that are generated from the market or from within the
company. The following is the analysis of Primark that are as defined below as:
Strength: It is the factor that defines the ability of the business by which they gain the
objective in effective manner or within the specified period of time (Pantano, 2018). As Primark
has total 161 numbers of stores that helps to provide the diversified range of clothes top the
customers. Primark also offers the lot of job opportunities in the market that emphasis the
performance of the company within the customers. Primark also works with the ethical trading
initiatives with that they focus on the need of the employees and measures the labour law.
Weaknesses: As being works with the initiative of the ethical trading it has some of the
negative impact on the operations of the Primark as in the past they work with the child labour as
well and due to this initiative that is not functioned. The issue of the employees as like poor
working conditions has negative impression on the values of the Primark. Due to this factor they
also didn’t perform extra promotion or advertisement that gains the advantage to their
competitors.
Opportunity: These are the different chances that has been operated by the market and
that has the positive prospect for the company in order to gain the success and development.
Primark opened 47 new stores in UK market and that has generated more revenue for the
company. They also opened the 7 new stores in Spain that reflects the stability of the business.
Primark has a good market position as compared to the Matalan and H&M that helps to gain
advantage from the competition.
Threat: There are a lot of competitors of Primark as named as Matalan, peacock, Zara,
Marks and Spencer, Tesco, ASDA and many others. Thus because of the the market share and
the profit share will get divided thus Primark revenue or net profit will get decreased. For this
customers become even more judgemental towards their choice and prefer those from where they
get the clothes at reasonable prices (Loureiro, 2018). Thus for this Primark must take care of
their quality and adopts different strategies to gain the higher market position.
Suggest and discuss strategic and tactics that could be used
Strategies and the tactics must be implies with the business in order to manage the
different operations with more sufficiency thus helps to get present the best of the company in
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the market that attracts the large number of customers. As from the analysis of the macro-
environmental factors it has been noticed that the company has faces the lot of challenges while
facing the conditions after the Brexit in which they have to applied the different strategies within
the company to gain the appropriate sales and profit (Ovezmyradov, 2019). The UK market has
the wider acceptability in the market but the customers always wants the new and different
clothes of different fabrics, colour, shades etc. There are a daily changes and random changes
that are faced by the fashion retailing company thus they have to perform the continuous
changes. It is the biggest challenge that is faced by the company in order to satisfy the need of
the customers and that all need a lot of research work through which all the market update will
be noticed in efficient manner. for this Primark has developed a different department named as
research and development department that collects all the relevant information from the market
and provide that to the manufacturing department that further implies the different strategies
within the company in adequate manner.
Skills, Knowledge and experience required in the retailing industry:
It defines the different situations through which they have works more on the different
operations of the business that has been performed in order to achieve the better success and
development of the company in an effective manner. With the help of these Primark must
emphasis the different skills and the knowledge of the employees through which the working
process will make even more attractive and creative. In this the communication becomes even
more effective by which employees get make a valid connection through which they could easily
conveys their feeling and any other relevant information (Modi, 2019). As Primark induces all
the technological advancement within the company and for that it is mandatory for them to get
implement the different techniques and provide adequate training and development of the
employees. The inducement of the basic knowledge as by know about the Microsoft excel,
PowerPoint etc by which the basic work will be performed that increases the financial balance in
the company. Thus Primark provide the balance employment to enhance the experience of the
employees and there are some of the different skills that must be necessary for the business that
are as defined below as:
 Communicate, negotiate and network: It includes the assignment of the different roles
and responsibilities to the employees as per their experience and knowledge. It is the
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skills that is mandatory for the business while dealing the larger network and manage the
different problem with more patience.
 Collaborate with marketing operations team: It is the skills through which the all the
employees works collectively with more calmness by which information will be shares in
efficiently manner (Patten, 2020). Thus all the different operations will be functioned
with more clarity and generate more value in the market
 Strong communication and stakeholder management skills: It is the skills through
which the information will be delivered with more confectionary manner that furthermore
helps to manage the stakeholders by providing adequate knowledge and information to
them as per the recent project of the company.
 Ability to influence at a senior level: It is the form through the work has been
performed with more effectiveness and by this the better products and services will be
provided to the customers. It influences the working style of the company in which all the
employees gave their best.
 Strong Microsoft Excel & PowerPoint skills: It is the skills through which the internal
performance of the company will be enhanced. It helps to develop the better marketing
strategies by managing the financial ability of the company (Bonetti, 2018).
 Legal knowledge about telemarketing campaign: It is the knowledge that is related to
the legal formalities that helps to perform all the different functions and operations in
successful manner with timely manner.
Recommendation
It has been recommended that Primark must uses different better strategies and tactic in
order to operate their business in more effective and efficient manner. There is a lot of
competition in the market and if Primark wants to generate more profit ratio then they have to
imply different strategies within the business by which it helps to give the tough competition to
their competitors. As they opens the new stores to several locations that helps to get make a
strong relationship with the customers but with that they also develops the different promotional
events that connects the large number of people with them (Ozuem, 2020). The retailers are the
one that manages the different operation and makes the balance environment between the need
and demand of the customers as compared to the supply from the whole sellers. Retailers are the
intermediates that match the supply of the products and services in the market to manage the
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timely supply in the market. The fashion retailers manages the different operation with more
efficiency by which they could use present the different trendy clothes in the market by which
people also get more fashionable. Thus Primark must also manage the different operations and
chain through which their products and services directly provided to the customers in timely
manner by which customer always get connected to the company.
Reflective commentary
It has been noticed that Primark is the very well known company that has huge impact on
the fashionable industry as they brings the most lavishing and trendy clothes in the market and
covers the diversified range of clothes and covers all kids, men, women and child. Thus people
get more relevancy as they get the diversified range of products from the market that helps to get
connect with the people. As from the one store everyone’s need will be get satisfied and they
also provide the clothes with reasonable prices that also attract the customers as they get the best
quality products with appropriate cost. Thus in order to achieve the better growth with reliable
time limit the company performs PESTLE analysis. As from this the macro-environmental
factors will be analysed through which they know about the different aspects that affects the
performance that furthers reflects the productivity and profitability of the company. Thus with
this they know that it has Primark has the wider acceptability but in avers of that due to Brexit
the performance will get reduces. As because of that the profit and advantage ratio of the
company will get divided thus with this Primark must start manufacturing the clothes as from the
local suppliers of the raw material that become more suitable for them.
As with the help of this analysis it has been noticed that the Primark generates more
economy in the country and has huge contribution in that as they imparts the job opportunities in
the market. They provide the job to all the income level group as from the lower level to the
higher one and also generates the adequate wages and salary as per the requirement of the
business. It is defined that they follows the different aspects as like the legal laws and manages
the pension scheme for their employees and make a contribution of 3% to secure their future life.
It imparts the positivism in the market and people get connected emotionally with the company.
Primark also perform the SWOT analysis and from this it has been noticed that a lot of market
strength and opportunities will be generated for the company in the market. It reflects that
Primark is in good condition and has more stability in the business but as the previous time they
work with the child labour and after signing the law they didn’t work with the child that is good
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for the business. They also provide the best services to the customers and ensure that quality will
be maintained and best trendy clothes will be generated in the market. Primark has a lot of
competitors in the market that affects the performance of the company and divides the profit and
market share for that they attains the different strategies and tactics within the business that helps
to reduce the market pressure and target the larger market and in return they gain the maximum
profit and sales.
CONCLUSION
It has been concluded from the above report that the retailing industry has a lot of
contribution in the economy generation of the country. It has been concluded that retailing
industry has following a process through which the product and services of the whole seller will
be transferred to the customers from the stores or the shops. Primark has performed PESTLE and
SWOT analysis to know about the macro-environmental and the strength, weakness of the
company that helps to generate the sufficiency in the market. Primark has also developed
different strategies and tactics to gain the higher aggressive advantage. That has been operated to
achieve the effective attractive from the market by which all the different need and demand of
the customer will get satisfied by the Primark.
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REFERENCES
Books and Journals
McColl, J. And et. al., 2018. Vintage fashion retailing: building the store brand.
In Contemporary case studies on fashion production, marketing and operations (pp. 59-
71). Springer, Singapore.
Fernie, J. and Grant, D.B., 2019. Fashion logistics: Insights into the fashion retail supply chain.
Kogan Page Publishers.
Piotrowicz, W. and Cuthbertson, R., 2019. Exploring omnichannel retailing: Common
expectations and diverse reality. In Exploring Omnichannel Retailing (pp. 1-10).
Springer, Cham.
Colombi, C., Kim, P. and Wyatt, N., 2018. Fashion retailing “tech-gagement”: engagement
fueled by new technology. Research Journal of Textile and Apparel.
Arrigo, E., 2018. The key role of retail stores in fast fashion companies: The H&M case study.
In Contemporary Case Studies on Fashion Production, Marketing and Operations (pp.
121-137). Springer, Singapore.
Hauser, M. And et. al., 2019. Towards digital transformation in fashion retailing: a design-
oriented is research study of automated checkout systems. Business & Information
Systems Engineering. 61(1). pp.51-66.
Pantano, E. And et. al., 2018. To what extent luxury retailing can be smart?. Journal of Retailing
and Consumer Services. 43. pp.94-100.
Loureiro, A.L. and et. al., 2018. Exploring the use of deep neural networks for sales forecasting
in fashion retail. Decision Support Systems. 114. pp.81-93.
Ovezmyradov, B. and Kurata, H., 2019. Effects of customer response to fashion product
stockout on holding costs, order sizes, and profitability in omnichannel
retailing. International Transactions in Operational Research. 26(1). pp.200-222.
Modi, D. and Zhao, L., 2019. Trunk Club: Revolutionizing the Retail Model in Fashion.
In Process Innovation in the Global Fashion Industry (pp. 99-121). Palgrave Pivot,
New York.
Patten, E., Ozuem, W. and Howell, K., 2020. Service quality in multichannel fashion retailing:
an exploratory study. Information Technology & People.
Bonetti, F. And et. al., 2018, June. Evaluating Managerial Drivers and Barriers to the
Implementation of In-Store Technology in Fashion Retailing: An Abstract. In Academy
of Marketing Science World Marketing Congress (pp. 455-456). Springer, Cham.
Ozuem, W., 2020. Service quality in multichannel fashion retailing: an exploratory
study. Information Technology and People.
ONLINE
Porter's five force analysis. 2019. [Online] Available through: <https://medium.com/product-
gyaan/porters-five-forces-analysis-868945aa5846>.
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