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Retail Theory and Practice - Doc

   

Added on  2020-10-05

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Retail Theory andPractice

Table of ContentsINTRODUCTION...........................................................................................................................1Overview of company.................................................................................................................1Key relevant changes within the UK fashion retail....................................................................2Relevant changes within the micro environment........................................................................3Strategies and tactics that could be used.....................................................................................4Recommendations.......................................................................................................................6CONCLUSIONS..............................................................................................................................7REFERENCES................................................................................................................................7

INTRODUCTIONRetail is all about the sale of goods to the final consumers in relatively small quantities andconsumers doesn't resell the products that they have bought as they are considered as the end ofthe line of the product. But is rare case in the retail sector buyer is not term to be the ultimateconsumers.. Therefore the retails sector includes all the stores and shops which sell products tothe shoppers i.e. the ultimate consumers (Viljoen and Wiskerke, 2012). Fashion is one of themost challenging retail business to run, so one among the growing retail sector is fashion retailindustry, where consumers’ goods market focused specifically on footwear, clothing andaccessories which can further be categorized by short lifestyles, fickle consumers and intensivecompetition. Whereas there are different clothing retail organisations in UK like Debenhams,Mark and Spencer, River island, Primark, Next etc. Therefore, in order to carry out this reportthe clothing retail organisation which is being taken into consideration is Primark. Thisassignment focuses the firm adopts to the changes taking place in micro and macroenvironmental factors. It has also discussed about various strategies and tactics which the firmuses so as to cope up with changes. Lastly, recommendation has also being discussed which theretailer can use so as to meet the challenges.Overview of companyPrimark which is one of an Irish fast fashion retailer company with its headquarter inDublin and is term to be a subsidiary of ABF (Associated British Foods). This company wasestablished over thirty years ago and stated out in Ireland but soon established its branches inUK, by creating historical legacy which explains why it retains two head office that is one inDubai and one in England (Ulbrich, 2013). Clothes retailer has been term to be successful in lastdecade by enjoying rapid expansion across Europe. Furthermore, Primark sources its clothesfrom different countries like Bangladesh, china, India and Vietnam, whereas labour and materialcost term to be lower as well as it works with variety of manufacturers from all round the worldso as to render consumers with what they want. Diverse range of products are being offered byPrimark which includes newborn and children clothing, home care, accessories, men's andwomen's wear, beauty products, confectionery and footwear. The company specifically sellsclothes at the low cost end of market that is below average prices. Moreover, Primark owns over350 stores and the largest Primark store is term to be located on Market Street Manchester that is1

in England. Near about 70,000 employees work under this retail company with its revenuearound £5.949 billion as well as it is consider to be the largest retail business in UK.Key relevant changes within the UK fashion retailThe key relevant changes within the UK fashion retail market can be identified with thehelp of PEST analysis which is examined below (Stewart and Shamdasani, 2014):PESTLE Analysis of Primark:Political:Political analysis specifically refers to the government rules and regulation which must befollowed by an organisation in order to carry out its business activities legally. Policiesestablished by the government might divert the local priorities of an organisation as thegovernment majorly contributes in predicting the success of downfall of the Primark.Government of UK acts in the changes of fiscal and monitory policies in a degree on how theeconomy reacts (Shanks and Tilley, 2016). Moreover, in deeper sense Primark company mustreact in the impact of an increase or decrease in taxation or in the impact of act in their businesslike health and safety act, sex discrimination act data protection act so as to carry out its businessin a legal manner. If the government of UK impose high tax rate regulation for retail industrythen the Primark company will also increase the price level of their products because of whilethey might have to lose their potential customers. As consumers will prefer less to makepurchase of high priced products. Furthermore, Primark should also adhere to UK and Irishregulations such as children code of practice that changes from state to state.Economical:It is an analysis where the impact of different market and economic trend changes andwhich can create risk in an organisation. The recession period of UK has greatly impacted uponPrimark success as customers look to cheaper clothing alternatives. When the economy changesagain the consumers will remain loyal to the brand if they possess the means to spend moreelsewhere (Schwarz and Hunter, 2012). Furthermore, labour cost is term to rise due to increasingconcern for shareholder's ethical working conditions and welfare regulations. As customer’scomes from different society so it is essential for the management of Primark to produceproducts and to decide the cos of product taking into consideration the pocket of their potentialcustomers. In case if the products produced by Primark company will cost more than affordableprice of customers then in that case customer will no more make any purchase. Additionally,2

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