Retail Theory and Practice

This report discusses the retail industry, focusing on the changes in the UK fashion retail sector. It explores strategies and tactics used by retailers to respond to industry trends. The report also provides an introduction to PRIMARK, a global retail organization, and its operations. Study material and solved assignments on retail theory and practice are available at Desklib.

RETAIL THEORY
AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
Introduction to the company.......................................................................................................3
Relevant changes within the UK fashion retail...........................................................................4
Changes within the Micro Environment.....................................................................................5
Strategies that can be used by retailers in order to response changes.........................................6
Tactics that are used by retailer's for responding towards retail industry trends in fashion
clothing sector.............................................................................................................................7
Recommendation.........................................................................................................................8
CONCLUSION................................................................................................................................9

INTRODUCTION
Retail industry can be defined as a major activity that make sales of goods and services
that are consumed by customer's on daily basis. Retail business is based on distribution channel
that are built with main motive of increasing sales and profits. On the other side, retailing refers
to the long input and output chain that undertakes production and distribution of products and
services to end consumer. This report is written from the perspective of the PRIMARK, it is an
Irish retail organisation that is operating their business at global level. Germany, Ireland, Spain,
Portugal and UK. It was established in the year 1969 and started to operate their business in
clothing, cosmetic, households products (Berry, Broadbent and Otley, eds., 2016). Moreover,
this report highlights on changes in UK's retails industry. Along with this tactics and strategies
that are implemented by retailer’s will also be included in this report.
Introduction to the company
PRIMARK is the British-owned Irish organisation that is operating their business at
global level as a food processing and retail industry. Its headquarter is situated in Dulbin, Ireland
and currently the organisation is operating their business at 372 locations. The key areas which
are served by Primark includes Austria, UK, Italy and many more. In the present scenario, there
70,000 employee's are engaged in the organisational operations that leads the management of
PRIMARK to accomplish their goals and objectives in minimum time period. Further, the first
retail store of the organisation was founded by Arthur Ryan and it is still operating their
operations at Mary street, Dulbin. Along, with this PRIMARK offers a wide range of products
that undertakes baby and children's clothing, menswear and womenswear, accessories, footwear
and cosmetic products. According to the present conditions of retail industry, PRIMARK is the
third largest retailer at global level. In the context of PRIMARK stores there are more than 350
retail outlets are managed that demonstrate physical evidence of organisation at global level. On
the other side, PRIMARK is operated by fashion fans and value seekers that is widely
established its business at global level (Bloom and et. al., 2012). In the present scenario, it is an
international organisation that is offering latest fashion, beauty and home-ware products at the
best value to the customer's by implementing their code of conduct in all functions of
organisation.

Relevant changes within the UK fashion retail
In the present scenario, retail industry is enhancing their business size at global level.
This determines that the business growth of operations and functions is increasing with rapid
speed. So it is mandatory for retail organisation to perform their operations according to the
external environment conditions in order to enhance the sale for their products. PESTLE analysis
is an effective tool which is included in this report in context of PRIMARK as follow:
Political Factor- Political aspect is consider with two elements. This is how much
government intervene in the economy of organisation. This undertakes tax policy, labour laws
etc. Another factor relates with political decisions that impact on business like tax rates,
modification in policy and many more. In context of UK government and political conditions
they are stable in nature (Dholakia, Dholakia and Chattopadhyay, 2012). So it is easy for
organisation to perform their work with more efficiency by adopting right actions and methods.
Economic Factor- The economic factor of a nation impacts on all organisation whether
they are international or local. It undertakes various factors like inflation rate, economic growth
and exchange rate. In the present scenario, due to Brexit decisions the economic of the country is
directly impacted negatively on retail industry. Lower employment, decrease in sale of products
and decrease in prices of products are some of the major impacts that impact on productivity and

performance of PRIMARK. Due to this changes performance of organisation is directly
impacted.
Social Factor- The social factor consists the changes that are present in the society in
which the business organisation is performing their business. In the present scenario, UK
population they belongs to different background because government is open for all. Therefore,
there are various changes will be monitored in retail industry i.e. changes in the colour
preference of products, distinguish between the food products, dynamic needs and wants of
customers. Further, for PRIMARK it works to identify existing opportunities in market.
Technological factor- Technology is one of the major factor that is related with business
and all of its operations (Dos Santos, Svensson and Padin, 2013). This determines that there are
various task are performed by management of PRIMARK by utilising Technological tools.
Majority of the changes which are faced by organisation in retail industry is due to innovation
and technological factor. It determines that most effective tool for organisation to deal with
opportunity is technological. So with the major changes it is identified that it is used to make
changes as per better results to overcome from the issue of changes in retail indsutry.
Environmental factor- This factor deals with the changes that impacts on the
environment with negative approach. In context of PRIMARK, there are various products will be
offered by organisation that are developed with eco-friendly approach. The main motive to
implement environmental factor in the organisation is to get better results as well as to develop
healthy environment in the organisation premises. Their are various task will also be adopted by
organisation for improving their goodwill in the society. Adoption of social change is an impact
in retail industry among all over the UK (Fuentes and Hagberg, 2013).
Legal factor- All the rules and regulations that are formulated by the government and
industry must be followed by PRIMARK. This results it is easy for organisation to perform their
work with more efficiency and effectiveness. In the present scenario, retail industry face
challenges from various organisation because their business is increasing at global level.
Government policies, rules and regulation etc. are some aspects of the legal factor that is
included in the legal factor. Further, with ethical considerations it is easy for organisation to
complete their work in effective manner. It changes in the retail engagement and its functions.

By considering all the above aspects of PESTLE analysis it is determined that with the above
opportunities and its analysis it is considered that PRIMARK will enhance their market area by
understanding the environment in effective manner.
Changes within the Micro Environment
Their are various modification are undertaken in the organisation that is understand by
consumers according to their needs and wants. Their are various stakeholders are related with the
functions of PRIMARK, it determines that there are various aspect relates with the getting long
term decisions and to gain better decisions. This determines that internal departments are major
part of organisation which leads organisation to gain high success in market.
New tools and technology- With the adoption of new methods and techniques there are
various task is easily performed by management. Like it is easy for management to enhance the
sale of their products for achieving better results and to reduce work loads from the manpower.
Quality of products is also improved by getting long term benefits for enhancing better results
through conducting all aspects in organisation.
Policies related with organisation- This is mandatory for the organisation to perform
their work according to the policies that are related with industry. It determines that it is
necessary for employee's and management to complete their work according to policies which is
impacting on business (Glover and et. al., 2014). The main motive to perform the work as
policies is to enhance their performance and to make better decisions.
UK retail fashion sector
As per the research report, it is identified that UK fashion market decreases the value of their
fashion in terms of the £250 million values. In the present scenario, one side the number of shops
or retail organisation is increasing with number of 228000 but the market size is decreases with
4%. This information is present in the graphical form as follow:

Strategies that can be used by retailers in order to response changes
Customer relationship management strategy- Customer relationship relates with the
approach that is used by retailer's to manage the interaction with customer's as well as with
brands. This is also assist in the organisation to perform their work and to deal with changes that
is retail engagement of their work. Fashion industry is growing with rapid speed. Therefore, by
monitoring the past experience and analysing it effectively this is easy for management to
generate positive relationship in organisation (Hristov and Reynolds, 2015). PRIMARK, utilise
the Email marketing option in order to get latest information which is convenient for
management.
Technological development- In the context of PRIMARK they are the major player of
UK retail industry which is operating their business at global level. With the implement of
technology strategy it is easy for management to provide their products as per the needs of
customer's. So better results will be achieved by organisation in easy manner. With the changes
and fashion aspects it is analysed that it works as an effective technique for image recognition.
Go extra miles for their customers- This is recognised as one of the most effective
strategy that is used by retailers to provide huge benefits to customer's. It is an essential term for
retailer's as it assist to provide better benefits to products and services for providing a great
experience to its services. In order to provide the world class service it is used to provide extra
mile for serving better customers products and satisfying its needs. This results it is for

PRIMARK to generate trust and loyalty among customer's for a longer period (Nagle and
Müller, 2017).
Product development- PRIMARK is focused toward responding the retail clothing and
market trends in the UK. It is related with the customer priorities, taste, preference towards a
product. As compare to this retailers are focused towards the organisational needs and preference
through which better results will be gained in order to deliver their products within minimum
time period.
Social media- According to present market conditions retail marketing as well as social
media both are performing their work through utilising various platforms that is used to respond
toward the change the social changes which are impacting on the business. Facebook, Instagram
etc. are some of the major tools by which organisational performance is impacted as it is focused
towards customer channel.
Tactics that are used by retailer's for responding towards retail industry trends in fashion clothing
sector
In the present scenario, there are various task are performed by management that is
related with customer's as they are king of market. With the purpose of the implementing various
strategies it is used by management to perform their work in appropriate manner. Like analysing
various strategies it is identified that with proper market competition it is easy for management
to adopt customer's demands and expectation (Naidoo and Gasparatos, 2018). Some effective
management it is used by promoting as with this things it is easy to accomplish organisational
goals in exact manner. So Marketing mix, model is included in this report. Product- This refer to the items that are sold by organisation to perform their work in
minimum time period. It is related with providing minimum level of performance.
Products are defined as the tangible and intangible items which serves customer's for
providing better products to customer's. Products relates with requirement of the
organisational goals to perform their work as well as to satisfy customer requirements
and desires in effective manner. Price- It is determine as the value that contain essential products and services and its total
cost depend on production basis. This includes consumer purchasing power, demand and
supply of goods in all segment of market. In context of PRIMARK it is related with price
that is easily affordable by customer's. This is also used by management to perform their

work by adding more value in their products. Penetration price strategy is one of the
major tool to enter in the UK market. Place- This refers to the selling point at which the organisation offers their products to
the customer's. It determines that it is mandatory for PRIMARK to provide their products
at all outlets. So the sale of organisational product will be achieved in effectively. This is
also used by management to provide their products at a targeted market area. In the
present scenario, online shopping, retail outlets and enhancing distribution channel are
major products for organisation (Obayi and et. al., 2017).
 Promotion- It is necessary for organisation to promote their products in the market. This
results that with the implement of promotion strategy it is easy for PRIMARK to manage
the work and to increase their market area for getting high benefits such as increase in the
sale of products.
Recommendation
According to the present market conditions there are various channels are present in
market that leads an organisation to perform their work at global level. Like online and offline
distribution of goods. This results it is management to approach large number of customer's in
easy manner.
Digitalisation and technology is the another factor that leads an organisation to enhance
their work performance by considering all aspects of management. This refers that with the use
of technology it is easy for management to deliver their products in short intervals. As well as it
also helps PRIMARK to track the locations of their existing products
Business Partnerships- This is difficult for the organisation to perform their business in
other industries, it determines that it is complex to understand culture, values and individuals
aspects in appropriate manners. So PRIMARK adopts the style of business partnerships with
local firms it results this is easy for management to complete their work in proper manner
(Pantano, Priporas and Dennis, 2018). Moreover, local individuals also generate trust easily
because of the involvement of local persons in business.
CONCLUSION
In the last, from the above report it is concluded that retail stores and industry are
expanding their business with rapid speed. In the present scenario, small as well as large

organisation all are performing their work and generating better modifications in retail industry.
So it is easy for management to enhance their business size effectively in market. Along with this
with the implement of proper action it is easy for management to increase the profitability as
well as productivity of organisation. Along with this, by formulating strategies as per market
conditions it is easy for management to increase their market size effectively. Further, by
analysing the external environment it is easy for management to complete their work in effective
manner that leads organisation to achieve their goals and objectives effectively.

REFERENCES
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