Primark: Strategies and Tactics in the UK Retail Industry

This report provides a detailed analysis of Primark's retail strategies within the UK market. It begins with an introduction to retail and the company, followed by an examination of key changes in the UK retail industry and their impact on Primark. The report then delves into the relevant changes in the microenvironment, including an application of Porter's Five Forces and a SWOT analysis to assess Primark's competitive position. Various strategies and tactics are discussed, focusing on adapting to the macro environment, such as flexible structures, distribution channels, and product development, as well as strategies for the microenvironment, including collaboration. The report concludes with recommendations for Primark to enhance its performance in the face of industry challenges and opportunities.

Retail Theory and
Practices

Table of Contents
INTRODUCTION TO RETAIL......................................................................................................3
INTRODUCTION TO COMPANY............................................................................................3
KEY RELEVENT CHANGES IN UK RETAIL INDUSTRY...................................................4
RELEVANT CHANGES IN MICRO ENVIRONMENT...........................................................5
VARIOUS STRATEGIES AND TACTICS...............................................................................6
RECOMMENDATION...................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION TO RETAIL
Retail comprises of process which facilitates as well as sell out different variants of
consumer products or services to general public (Retail Sector, 2020). In other terms, retail is act
as vehicle or medium through which producers can able to sell their finished products to end-
users and create revenue. For instance, if there is furniture manufacturer produces wide variety of
furniture goods then they sell out same to various stores that in turn sell those items to
consumers. Retail includes sale of merchandise goods from manufacturer directly to buyers who
want to consume that particular product. Fashion retail sector is an integral part of business as it
means the procedure through which procurement of clothes merchandise can be done. It includes
purchasing of trendy clothes from fashion producer and sell out same to consumers. It includes
fashion retailing, marketing, and merchandising. Fashion retail organisations have high
contribution in retail industry.
INTRODUCTION TO COMPANY
Primark is one of largest and well known fashion retail organisation which indulges in
offering number of distinct product range in order to satisfy diversified demands of consumers.
Primark is a leading and flourish Irish fashion retailer and its headquarters in Dublin, Ireland.
Organisation is basically a controlled by ABF which is parent company of PRIMARK. Company
deals and serves high quality products of merchandise clothing. It includes trendy and western
clothing for all class of customer groups (children’s, women, men) and also it deals in home
products, accessories, footwear, personal and beauty care products along with confectionery.
Company owns and regulates approx 370 physical outlets in across 12 countries including
United Kingdom. Primark is solely owned by Associated British Foods. Founder of such largest
retailer is Arthur Ryan who is Chairman of company. Mission statement of Primark is “to offer
high quality and fashionable goods to consumers which value their money”. Vision of company
is to establish high standards and benchmarks for other competitors and to achieve pioneer stage
in fashion retail industry. Company employ and work with more than 78000+ employees and
serves its products in number of different countries. Primark has its own website portal
primark.com which provide access to consumers to buy product at one glance. Moreover,
company has launched three dining experience within its stores under name of Primark Cafe with

Disney. In addition to this, Organisation also features a beauty studio and barbers to provide all
beauty services at first place to its customers.
KEY RELEVENT CHANGES IN UK RETAIL INDUSTRY
Macro-Environment is highly dynamic in nature as it changes and fluctuates on timely
basis. In fashion retail industry everyday something new emerged in sense of fashion trends,
advance technology, change in customer’s aspects and so on. External environment includes
various factors which influence operations and working functions of whole retail industry.
According these changes organisations required to bring relevant changes with purpose of
dealing with such dynamic environment (Abbott, 2015). Retail industry of UK is one of largest
private sector and contributor in its economy. As it act as employer and has employed more than
three million workers till now. Although, retail industry is changing at very fast and
unprecedented speed along with it bring huge challenges and opportunities for existing retailers
who are operating its business. In recent years, UK retailers has faced various challenges due to
Brexit referendum because of which it slowed down growth of retail industry. Industry has to
face large uncertain risks in which approx more than 85000 employees has lost their jobs along
with this around 9000+ stores are being closed (Retail Trends, 2020). Due to all these
unpredictable situations retail organisations required to appropriate as well as significant
decisions in order to secure their future and sustainability within industry. There are different
factors which are required to be examined by Primark in order to bring change drivers and cope
up with these conditions. By applying PEST analysis Model numerous opportunities and threats
can be determined.
Political: these factors are those which are highly associated with government interventions and
political laws as well as situations. Currently in UK, political conditions are not great as it was
earlier due separation deal of UK-EU (Brexit). This disruption influence supply chain and
profitability of retail industry. This hinder its smooth operations and business. Brexit has affects
the import and export policies of country which might affect productivity and profitability of
Primark. Due to unstable political conditions it influences country’s investments. To deal with
such uncertain political laws, Primark can make relevant changes in its organisational structure
as it cultivate flexible structure in order to adapt changes frequently and effectively (Lichten and
et. al., 2015).

Economical: these factors are associated with economic conditions of country which includes
GDP, consumer’s purchasing power, consumption level and so on. In UK, these factors are
always play an essential part is case of trade and business. UK consumers have high purchasing
power which allows them to buy things as they want. In time of recession also retail industry has
preserved effective sales graph. These factors brings immense opportunities as well as threats for
retailers. Opportunities in terms of growth expansion and earning higher profits (Kolios, Read
and Ioannou, 2016). Threats in terms of generating more competition level as new retail
competitors may come up with new products. In such case, Primark can build effective and
strong distribution channels and supply chains so that it can serve its product in better way as
compare to its rivals.
 Social: these factors are related with demographic changes and fluctuations in taste and
preferences of consumers. These bring deep impact over retail sector and its profitability.
In UK, people are getting more conscious regarding prevailing fashion trends and expect
exclusive and unique experience as well as value of their money. Although, now
consumers demands for more specialised and personalized services this brings immense
impact over retail industry. As organisations required to bring relevant changes in order
to serve better experience. In such case, Primark can bring changes in its promotional
activities and bring modification in features of its products in terms of durability, style
etc.
 Technological: these factors are associated with new techniques of producing and
delivery of products to its end-users. In UK, there is speed up development and enormous
growth in e-commerce due to which stiff and fierce competition is facing by brick and
motor businesses in UK retail industry. This emerge as people want new digital
experiences. In such, Primark required to operate it business on e-commerce websites
also bring change in its sales system by establishing digital catalogue.
RELEVANT CHANGES IN MICRO ENVIRONMENT
Micro or internal environment is equally important along with macro surroundings.
Internal environment is associated with capabilities and flaws of internal elements within retail
industry which has ability to influence operations and functions of retail organisations. Primark
can implement various models in order to assess its competitive position in market such are
SWOT and Porter’s five force framework (Lee, 2018).

Porter’s Five Forces model: there are five forces which affects competitive position of
PRIMARK for which company required to make relevant changes within retail industry. Some
of them are discussed below:
 Industry rivalry: In UK retail industry, strength of this particular is quite high because of
stiff and fierce competition is exists in target market. There large number of retailers who
originally involved in producing and selling of identical products. Primark is also facing
high industrial rivalry as it compete with top competitors which are M&S, ZARA, H&M.
Threats of substitution: the impact of this force is also high which affect profitability and
productivity of retail industry and Primark. As there is stiff and fierce competition prevails in
retail industry then it is obvious that similar products are available for customers from which
they can choose from (Ge and et. al., 2019).
SWOT ANALYSIS: In retail industry, Primark has immense strength and opportunities
which enables firm to sustain its competitive position and helps in growth expansion. But
along with that there are various areas in which company has weak presence and also various
threats which create hurdles in its smooth functioning.
 Weakness: Primark has weak presence on digital platform as it has only one online
website as compare to its competitors. Company has weak advertising to promote its
products. Moreover, slow economic growth of EU.
 Threats: Primark has to face various threats which include high competition from its top
competitors. Company’s revenue are highly depend upon EU economy as its major stores
are established in Europe. Moreover, there are some products which have low quality.
In order to deal with these weaknesses, threats, and various forces company required to
formulate and implement new strategies in order to cater the negative impact. Such as creating
effective advertising and promotional activities, collaboration with rivals, using of latest
technology and so on (Petermans. and Kent, 2016).
VARIOUS STRATEGIES AND TACTICS
Primark can focuses on various areas related to retail strategy such as store location,
merchandising, pricing, and marketing in order to apply relevant changes which are discussed
above. These changes are associated with macro and micro environment. There are some long
term strategies can be suggested to Primark with purpose of dealing with internal and external
situations.

Strategies related to macro environment
 Flexible Structure: In order to deal with political changes and unstable laws company
can bring relevant changes in its current organisational structure. It can be done through
cultivating flexibility in its structure. This enables firm to modify its policies and
strategies according to changes in laws and regulation. Primark can impose various
research and development centres so that it can be easy for management to determine
these changes frequently and effectively. Also, for flexible structure company can
organise learning programs for its workforce so that they can adapt and modify
themselves accordingly (Chkanikova, 2016).
 Distribution channels and supply chain: in order to handle changes of economy
Primark can formulate strategy of building effective distribution channels and supply
chain network. For this company can make use of online platform and open more
physical stores in those areas where consumers are not aware about brand. Through this
company can able to serve its product on larger scale. By online access company can
reach out to large customer base and also it become easy for buyers to shop at one click.
 Development of new product: Primark can adopt strategy of product development with
purpose of meeting out social changes. With help of this strategy company can make
modification in its existing product or develop new fresh and trendy products for its
target customers. This enables firm to serve and satisfy its customer needs at very first
place. Through this tactics, Primark can able to maintain its goodwill and brand image
within retail industry. Also, company can emphasise on better promotional activities as it
can make use of social media platform and paid advertisement.
E-commerce websites and Digital catalogue: in this hi-tech era, Primark majorly make use of
brick and mortar techniques to sell out its product in market. This become as threat for company
as it do not make use of digital technology. Company can sell out it products through various
other social websites such as Facebook, Instagram and also by making use of online merchandise
organisation such as Amazon.com, ebay.com etc. Also, company can update its sales system by
introducing digital catalogue feature at digital platform. This strategy enables firm to increase its
profits and compete with its competitors effectively. Also, firm can do regular survey so that it
can easy for them to cater impact of technological factor (Anand and Grover, 2015).

Strategies for micro environment
 Primark can make use of collaboration technique in order to reduce force of industry
rivalry. Through collaboration company can easily assess moves of its competitors. Also,
with help of this strategy firm can make use of limited resources, information, attract
customers from its competitors. It can increase its market share and customer base
(Morcol and et. al., 2017).
 Primark can make use of product differentiation strategy in order to reduce force of
threat of substitution. Company can offer unique and exclusive range of brand new
product for purpose of attracting new customers and retaining loyal ones. With
diversified product portfolio Primark can able to sustain its competitive edge and
expand its brand at larger extent.
 Primark required to be social presence on social media and digital platform through this
company can convert its weakness into strength. Also, firm can open its new physical
outlets in different areas apart from EU. Through this company can able to increase its
revenue and profits.
 Primark can make use of paid and non paid promotional activities which include
advertising, sales promotion, publicity and other technique so that it can promote its
campaign of products at large scale.
 Primark can make use of digital marketing which includes content writing, Blog writers,
social media marketing and so on (Corban and et. al., 2019).
RECOMMENDATION
In today’s dynamic era, there are various challenges that retailers face with in retail
industry. Some recommendation are suggested to retail organisation which helps them to
ascertain strategies to overcome from such challenges.
 Retailers required to maintain customer loyalty which helps them to increase their brand
image and reputation. Today, effective and great customer experience is key to success
and survival in competitive market. Every retailer required to value its existing
consumers as some of them think that if one goes then they can easily replace them. This
hinders sustainability of business growth.
 Retail organisations required to maintain effective internal communication system as
improper communication between department might influence business processes.

Organisation can implement Enterprise resource planning system which can provide
effective solutions for administering internal communication with other organisations.
 Retail organisation can establish customer relationship management system which
enables them to preserve valuable details of customers and they can send customized
mails regarding offers of products with more efficacy.
 In retail industry, major challenge that retailers has to face is high labour turnover rates.
Retail organisation must able to retain its skilled and talented staff as it take more energy
and costs to replace employees. Retailer must increase employees engagement and
participation within company.
 Retail organisation required to make use of effective HR management system and
competency management system in order to cultivate and maximise potential of its staff
and workforce.
CONCLUSION
From above research report, it can be concluded that retail management theory and
practices are useful in success of retail organisations. Retail organisations required to assess
external environment properly in order to sustain their competitive position and also enables
them to understand various upcoming opportunities as well as threats. Also, it enables them to
determine their internal capabilities so that they can do modification in their current policies and
strategies. This can be done through various frameworks such as SWOT, porter’s five forces
model, pestle analysis. There are various retail strategies which helps retailers to compete
effectively and efficiently in stiff competition. This enables them to provide high quality
consumable products according requirement of consumers. Moreover, these are helpful in
sustaining competitive advantage and growth expension.

REFERENCES
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prioritisation in tidal energy developments. International Journal of Sustainable
Energy, 35(1), pp.59-74.
Lee, K.C., 2018. Grocery shopping, food waste, and the retail landscape of cities: The case of
Seoul. Journal of Cleaner Production, 172, pp.325-334.
Ge, D. and et. al., 2019. Retail supply chain management: a review of theories and
practices. Journal of Data, Information and Management, 1(1-2), pp.45-64.
Petermans, A. and Kent, A. eds., 2016. Retail design: theoretical perspectives. Taylor & Francis.
Chkanikova, O., 2016. Sustainable Supply Chain Management in Food Retailing: Insights into
corporate practice of managing supplier relationships (Doctoral dissertation, Lund
University).
Anand, N. and Grover, N., 2015. Measuring retail supply chain performance. Benchmarking: An
International Journal.
Morcol, G. and et. al., 2017. Business improvement districts: Research, theories, and Abbott,
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