Strategies for Primark's Future Success in Retail Sector

Strategy and Strategists BUSN 09044

TABLE OF CONTENTS
Executive summary..........................................................................................................................1
Strategic audit..................................................................................................................................1
Analysis............................................................................................................................................2
Critical reflection.............................................................................................................................5
REFERENCE...................................................................................................................................7

Executive summary
Primark is the multinational company which operates under retail sector. It is the fashion
company which deals in clothing, footwear, accessories, perfumes etc. the recommendations
which are provided to the organisation so that they can compete successfully in the future are as
follows:
Primark is not in the favour of online selling because according to them selling online is not an
easy task and moreover to deal with replacement is another level challenging thing (Gaspar and
et.al., 2018). Company says that being in the retail sector they sell products on low margin and
they are not into the capacity to deal the online losses. So in order to deal with the problem
company should have redesign their website with high tech online shopping portal feature.
Another recommendation is that business should have explore new markets. As there are lot of
market which are untouched by the company and exploring them can be useful for company for
the profitability purpose. Finding out skilled and talented designer and company should have
also go for diversification. Loyalty cards is also the best strategy to attract customers towards
the company (Cozzolino and Moroni, 2021). Other strategy can be increase their marketing
practice to make more customers aware for the product. Opening production factories in
developing countries will resulted in low cost products.
Strategic audit
The financial and business performance of the company is not as what it is expected. As the sale
of Primark has not reached as per the expectations and company has to face downfall. In this
latest quarter only company has faced reducing sales because of the quick spreading of the delta
variant of covid 19. shares of the company has also went down and reaches to 3.4% at 0859
GMT. The main market of the company from which they were making profits which are Spain
and Britain are badly performing. As the tourism of Spain has stopped due to pandemic and
because of the restrictions on foreign tourists, company has also witness drop in their sales and
revenue (Cho, Afflerbach and Han, 2018). In the financial year 2019-2020, company have
closed there many stores due to the lockdown which has reduced their sales.
At the time of first lockdown there revenue has drastically fell down. Although it can be said
that in the year 2019 company was making good profit because they sell affordable good quality
of clothes. But after the government have announced covid 19 in the year 2020, company has to
face drastic reduction in the sales because they sell clothes, footwear etc and these are not the
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basic thing which is required for survival. At the time of lockdown consumers are more concern
about grocery because it is required for survival so they are willingly to spend on grocery but not
on clothes. Clothing have become secondary for the company (Gustafsson, Hermelin and Smas,
2019). Pre pandemic company was making good profit but post pandemic company has hit
strongly because every fashions sector was facing the loss situation.
Although company have received the shortfall in the sales but still they have raised their profits
in the financial year 2021 by showing high profit margin because they have reduced the number
of workers which they have employed and have also reduced the store operating costs.
Analysis
Redesigning the website is important because website is the online identity for the company. So
website should be attractive which promotes goods and services of the company. Website should
be made or designed in such a manner which can convert prospects into the potential leads just
like salesmen does for the company (Würsch and Simmons, 2019). As website get bugs and
there are many problems which arises with it, so it is required to timely fix them. Customers will
purchase items from website only if it will look attractive to them so posting attractive images
can be done if website have advanced features. In the process of redesigning company can add
advanced features which will provide good experience to the customers. Website redesigning is
connected with the business goals. If company have make some changes in their brand than also
little makeover is required on the website. For Primark redesigning website is essential because
they does not have so many customers with shop with them online. So professional website will
be helpful in getting more customers.
Exploring market means getting opportunities to reach those areas which company does not
have reached yet (Gadde and Wynstra, 2017). Expansion is necessary if company wanted to
grow their market share. In order to get growth it is required that company can increase their
customers base and for increasing the customer base it is required that they reaches to cross
borders. Exploring overseas will give Primark many opportunities which will help them to attain
success. Adopting market development strategy can help company in achieving higher results.
Primark will also get advanced business knowledge if they will go oversea to expand their
business. Although Primark is trading at global market but still there are many countries where it
is not reached so company can expand in those countries. Company can also learn about
different technologies and techniques which they were not using (Evangelista, Colicchia and
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