Retail Theory and Practices

This document discusses the theory and practices of retail, focusing on Primark as a leading fashion retailer. It explores the external factors affecting the company and how it adapts to them, as well as the internal changes it makes using SWOT and Porter's five forces analysis.

RETAIL THEORY
AND PRACTICES

INTRODUCTION
Retail refers to mechanism or procedure through which wide variety of consumable
goods and services are delivered or sell out to end-users or customers. This can be done with
help of various multiple medium of distribution network with purpose of earning higher profits.
Retailers are those individual who owns and regulate such organisations in order to satisfy
requirements of customers by providing goods in small quantities. Fashion retail organisation are
those which deals in fashionable merchandise and fashion retailers provides latest trendy
wearable clothing to customers. Primark is one of flourish and leading fashion retailer company
which deals wide variety of product portfolio which contains trendy clothing, cosmetics and
home-ware items.
There various external factors in macro environment due to which company have to bring
relevant changes in order to cope up with these forces. Through implementing PEST analysis
model Primark can assess change drivers. As political factors are presently unstable in UK due to
which government policies and rules are fluctuating in such Primark can bring change of flexible
organisation structure in order to adapt new policies easily. Economical factors of UK have
strong economy which permits consumers to purchase goods that they want. Primark can bring
change in its distribution channel as company can make use of online and social media platform
so that consumers can get easy access to buy products at one click. UK has diversified and
dynamic socio-cultural as well as people live trendy lifestyle. Primark can bring innovative
modification in its products in terms of durability, stylish etc. to satisfy dynamic demands of
consumers. Company can establish research centres to identify new requirements at first place.
In case of technology, UK has advanced technical and digital technology which brings immense
opportunities. Primark can bring change in its sales system as it can build digital catalogue
through which customers can smoothly select their favourite products digitally.
Company required to make changes in its internal environment by applying SWOT and
Porter's five force to assess its position. Various five forces such as industry rivalry, threat of
substitution, buyer's power, supplier's power, threats of new entrants as these have high and
moderate impact over retail industry and Primark operations. Swot analysis justify strengths,
weakness, opportunities and threats of Primark. These two models provide overview about what
position is being hold by organisation in retail industry. How it utilise opportunities in business

expansion and growth. Primark faces various threats such as its all stores are in Europe so it sales
and revenue is highly depend upon EU economy. To convert this threat into opportunity
company can open its more outlets in other countries by using market development strategies.
Primark has threat from its top competitors that are ZARA, H&M, M&S and others. To convert
such threat into its favour company can make use collaboration technique. Primark has low
standard of management quality in hi-tech position which act as threat for company. To convert
this threat company can make use of latest advanced technology.