Retail Theory and Practice

This document discusses the impact of macro and micro environment on the retail industry, strategies and tactics used by companies, and recommendations for success. It focuses on Primark, a fashion retailer, and analyzes its market position, strengths, weaknesses, opportunities, and threats. The document also explores marketing mix strategies and consumer behavior marketing strategies. It concludes with recommendations for Primark to overcome challenges and achieve long-term objectives.

RETAIL THEORY AND
PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
Impact of the macro environment ..............................................................................................4
Impact of the micro environment ...............................................................................................5
Strategies and tactics to be used by the company ......................................................................6
Recommendations ......................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Retail includes the process in which the companies are providing the products and the
services to the customers through the various channels of distribution. Retails also follow the
strategies decisions which would include the types of the stores and the market segment and the
providing the after sales services. Retailers are implementing these strategies to attract the
customers these retailers are also trading through the online market as well. The retailers are
using the latest technology and providing the satisfaction to the customers as well. The retailers
are analyzing the market and the need of the customers as well.
Primark is retailer which is dealing in the fashion clothes and accessories as well.
Company was founded in the 1969 and the company is founded by the arthur ryan. The company
has headquartered in Dublin and other was opened in England as well. The clothes of the
company are sell all over the countries and also the company is working with the manufacturers
of all over the world. Company is successfully selling the products in Europe and US. The
company is providing the variety of the products which includes the baby products and men wear
and women wear as well. Primark is selling the clothes at the low prices and affordable prices.
Company is owns about 350 stores, first Primark store was opened in 2006 in Madrid Spain
which was outside the UK. The company is meeting the consumers needs and company is also
providing the fashion to the customers at the low prices. It the fast growing brand in the fashion
retail industry. The company has gained shares in the market and the com any is fighting with the
competitors like the mark and Spencer. Company is also trying locate in the low prices areas
which would increase the sales of the company.
Impact of the macro environment
Macro environment impact on the company would analyze by the pestle analysis.
The pestle analysis is done below.
Political factors
The company was not able to gain the profits at the time of the brexit in UK. The prices
of the products began to fall and the company resulted in taking the decision of the leaving the
Europe but that time the business market was rising ans the financial market as well. So the
company had not left the Europe. Election in the UK was disturbing the sales of the company
and many customers were not able to work in the efficient way. In order to increase the sales the

company stated promoting the elections and also increase the awareness among the People
regarding the elections.
Economic factors
The economic growth is leading the company towards the growth and also due to
economic growth the sales of the company is being increasing rapidly (Niederleytner Enciso
2018). The unemployment policies are also affecting the company Because the employees which
were hired or recruited are not efficient and skilled. Unemployed employees are hired and
provided the skilled programs which would also include the training programs arranged by the
company. The company is also in the pressure that the company would be able to fulfill the
customers needs. In the fashion retail industry customers only like the innovations and the latest
trends as well.
Social factors
Fashion industry is affected by the lifestyle of the people and the standard of living of the
people as well the clothes are to be made according to the fashion and the lifestyle of the
customers as well. The company is also affected by the income of the people because the clothes
of the company must fit in the budget of the customers. The demographic changes are also
affecting the sales of the company and the company need to try to overcome these measures
(Hjelmeland, and et.al., 2016).
Technological factors
Clothes need innovation and the new technology as well. So the technology is affecting
the sales of company. Company is adapting the changes of the according to the latest trends.
Company is selling the products online and also use the company is using the product for
developing the market as well. The fashion clothes need to innovated from time to time and these
products would be made according to the life cycle and the standard of living of the customers
swell.
Legal factors
The company has entered the global Market and the company is affected by the rules and
regulations of the global market. Employment and competition regulations are affecting the
company. The retail market is inviting the new entries in the market so the company is not able
to spread the market with the rapid growth (De Ridder 2015). The company has to innovate the
products to attract the customers and fight the competition in the market. Employment laws are

amended and the company is affected due to these type of the laws. These employment agencies
are working according to the employees needs and the company is ls affected by their type of the
working.
Environmental factors
Company is following the rules and the regulations made of the environment. People nor
any company must try to harm the environment because in return environment would be harmed
the government would harm those people and levy heavy penalties on these people and
companies. The customers are also demanding the environment friendly products so the
European companies are making the products which would support the environment. The fashion
is controlling huge amount of the scrap and the company is looking after that he scrap materiel
are properly managed and the company would make the effective measures for the waste
management (Ortega and Okechukwu 2017).
Impact of the micro environment
Micro environment is analyzed by the process of the swot analysis. Swot analysis is done
below.
Strength
Primark is growing rapidly because of the selling the product in the market low prices
which is attracting the customers. On top that the company has also take over the Arcadia Group
for becoming the largest brand in the clothing and footwear in Europe. The company is applying
the new strategies and using the innovations for attracting the customers. The products are
different at every store of the company. Company is preparing the products as per the culture and
the taste of the customers. Primark has also take over the Arcadia group through that the
company has become the biggest fashion retailer in UK.
Weaknesses
In the fashion industry main problem of the customers and the company is that if the
customers saw new products at the different brand they would easily buy these type of the
products. Consumers are not loyal towards the company in the fashion industry and it is affecting
the growth of the company. Company is facing major problem because the company is wholly
dependent on the UK market and the country market it would not expand the business
accordingly. Customers are changing their perception and the company has to change their
products accordingly (Perera 2017).

Opportunities
As per the statistics the population of UK would suffer form the obesity. So the company
is focusing on investing in the plus size clothes and the company is investing in these types of
plans. The company has also invested in the US market and the company is also gaining the
opportunity of opening the new stores in the US. Through the company would also expand the
business as well. Due to increase in the population the sales of the company is also increasing the
company is also using the online commerce for the selling the products' to the new and the
existing customers (Ferrer, Varer. and Bowling 2016).
Threats
Due to increase in the competition the company is facing the strong competition in the
market. Brexit has affected the company and the parent company of the Primark has decided to
leave the Europe. The uncertainty in the financial market and the economic market is affecting
the sales of the company. Due to these threats the company is not able to run the business in the
effective way. The market of the UK is increasing continuously but the customers which are new
must also except the company products, so competition is the biggest problem of the company
(Rastogi and Trivedi, 2016).
Strategies and tactics to be used by the company
The company is using these strategies for achieving the long term goals and objectives as
well. The company need to work in the efficient manner through which the company would
improve the sales as well.
Marketing mix strategy
marketing mix strategy is consists of the product, price, place and promotion as well.
Product – Primark is focusing on the quality of the products which are need to be
delivered to the customers as well. The company is providing the products in the accessories ,
menswear and children wear and many more. The company is not only focusing on the product
but it is also focusing on the price and the place for the product. Company has selected the target
customers and the also offers them the products at the exclusive range (Fozer, and et.al., 2017).
Price – company is providing the lower quality of the products because than only the
company would afford the low prices of the products. The company is preparing the new trends
and the bringing up the innovation among the products. So that the customers would buy the
products and it would benefit the company.

Place – the company is also focusing on the place and the stores in which the products
would be stored and selled. Products of the company is selled at the store and the place must be
according to the customers and also it must have all the facilities which are for the customers.
Customer thinks that the low prices means the low quality as well. So the company must provide
them good quality of the products so that customers' perception would be changed (Mayabi,
2019).
Promotion – for selling any product in the market the company need to do the promotion
through which the company would come up the innovation and the strategies for attracting the
customers as well (Eisenberg 2019). The company is decreasing the sales because of the
promotion of the products. The customers must be aware about the products which is entering
the market.
Porters five forces
The strategy is revolving around the industry rivalry, it includes the bargaining power of
buyers, thereat form the substitute, bargaining power of suppliers and threat from the entry.
Bargaining power of buyers – the buyers are bargaining because they want the products
at the least price. At the same time low prices means that the products are of low quality so the
customers and so the company would gain the low profits.
Threat of the new entrants – the new entries in the retail market is common and the
company need to be prepared about the new entrants as well. The customers are attracted by the
new entrants than the company would suffer with the low profits (Benthaus, Risius and Beck
2016).
Bargaining power of suppliers – suppliers would sell the products at the low prices and
the co many would sell the product at the same price and the company would earn profit. But in
case the suppliers would change the prices of the raw (material) than the company would lose the
profits because company would not increase the price at the shirt notice.
Threat of substitute – the product is made by the company but in the market the
substitute product are also selled. The company reputation is affected by this performance. So the
company must look after the substitute product and the company need to place the attractive
prices for the substitute products.
Rivalry among the competitors – due to the increase in the competition the company is
facing the problems and the company need to innovate the product for facing the competition.

The company is fully depended on the product and the price of the product so the company must
look after the problems which are affecting the products and the sales as well.
Company is also following the consumer behavior marketing strategy. The strategy is
made according to the consumer behavior and the company need to work as per the consumer
needs. The company select the targeted market and the company is and also the company is
following the marketing mix strategy for the analyzing the need of the consumers The Primark is
dealing in the fashion products so the fashion changes every time. So the company need to look
after the trends and the culture of the targeted customers. The products would only be accepted
after the people had accepted the price and the product. The company is focusing on the
customers need and the performance of the product in the market than only customers would
accept the other products of the company in the market.
Recommendations
The company is trying to overcome the weakness and the threats but here are some
recommendation through the which the company would overcome the weakness and threats.
Company must try to introduce the new products which include the new clothes and the
company would also increase the sales of the products accordingly. The products which are
made must be innovated and prepared according to the customers choice. Company is relying on
the UK market but the company would also try to expand the business in other countries which
would not affected the UK market (Ali, 2016). The brexit was having the large impact on the
company so the company must try to open the stores tin the those countries which are not under
the impact of the brexit. Due to these the company would increase the sales and overcome the
brexit. Increase in the competition is the major problem for the company but the company could
make the products so innovative that the customers would not buy the products of the other
companies. The company must not exit the Europe market but the company need to face the
challenges and try to overcome these challenges which would also increase the goodwill of the
company in the market. If the challenges are overcomed than the company would also increase
the productivity and achieve the long term objectives as well. These points must be implemented
by the company for increasing the performance of the company in the market.
CONCLUSION
From the report Primark is the fashion retailer store and the company is focusing on the
retail market. The report includes the pestle analysis and the swot analysis as well. The company

need to overcome the weakness and the threats and grab the opportunities as well. Company is
utilizing the strengths and the company is also entering the global market through that the
company would gain the profits and achieve growth as well. The pestle analysis include the
impact of the macro environment on the performance of the company. Company is largely
affected by the increase in the competition and the company would also not increase the price of
the products. The company need to overcome these negative impacts and try to achieve the
growth and success.

REFERENCES
Books and journals
Ali, R.I., 2016. Product development and working procedure at Maxim Label & Packaging Pvt.
Ltd.
Benthaus, J., Risius, M. and Beck, R., 2016. Social media management strategies for
organizational impression management and their effect on public perception. The
Journal of Strategic Information Systems. 25(2). pp.127-139.
De Ridder, S., 2015. Are digital media institutions shaping youth’s intimate stories? Strategies
and tactics in the social networking site Netlog. New Media & Society. 17(3). pp.356-
374.
Eisenberg, P., 2019. Financial Analysis of Primark Stores Ltd. with regard to a Stock Exchange
Floatation (IPO). International Journal of Management. 7(1). pp.91-112.
Ferrero, R., Varer, M. and Bowling, D., 2016, October. Effective Marketing Leadership,
Strategies and Tactics During Turbulent Times in the Oil and Gas Industry. In SPE Asia
Pacific Oil & Gas Conference and Exhibition. Society of Petroleum Engineers.
Fozer, and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS process
alternatives. Journal of cleaner production. 147. pp.75-85.
Hjelmeland, and et.al., 2016. Devold wool underwear (Bachelor's thesis).
Mayabi, B., 2019. Primark. Core Competencies, Pestle Analysis, SWOT-Analysis. GRIN Verlag.
Niederleytner Enciso, N., 2018. Valuation of Inditex group.
Ortega, A.M.G. and Okechukwu, C.U.U., 2017. Strategic means to launch business-Primark in
Denmark.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.