Retail Theory and Practice: Analysis of the Primark Fashion Retailer

This report provides a comprehensive analysis of Primark, a prominent fashion retailer, examining its operations through the lens of retail theory. The introduction offers an overview of retail principles and introduces Primark, highlighting its history and business model. The report delves into key changes within the UK fashion retail sector, employing PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors impacting Primark. Furthermore, a SWOT analysis is conducted to evaluate the company's strengths, weaknesses, opportunities, and threats within its microenvironment. The report suggests and discusses various strategies and tactics Primark could employ, referencing the Wheel of Retailing and conflict theory to inform its recommendations. The conclusion summarizes the key findings, offering insights into Primark's market position and strategic approach. The report aims to provide a thorough understanding of Primark's retail strategies and its adaptation to the dynamic fashion market.

Retail theory
and
practice

Table of Contents
INTRODUCTION...........................................................................................................................1
Introduction to retail....................................................................................................................1
Introduction to the company........................................................................................................1
Key relevant changes within the UK fashion retail.....................................................................2
Relevant changes within the micro environment.........................................................................3
Suggest and discuss strategies and tactics that could be used.....................................................5
Wheel of Retailing...........................................................................................................................5
Conflict theory.................................................................................................................................6
Recommendations........................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Retail theory refers to the selling of the goods to the consumer to satisfy the needs and
the wants of the consumer based on the selling and the distribution needs of the customers.
Retailing means the selling of the goods to the individual in the small quantity and the sale of
services to the individual(Bowen, 2016). Retailers are the person who act as the middleman and
the intermediaries to satisfy the needs and the wants of the customer. It helps in providing the
right product in right time and in right quantity. Primark organisation is the fashion retailer
company and had its headquarters in the United Kingdom , London and was founded in the year
June 1969. The company offers the latest fashion, beauty and the home ware products to its
customer. The topic covered under this report are overview of the retail theory, overview of the
Primark theory, PESTLE and SWOT analysis of Primark and its tactics and the
recommendation.
Introduction to retail
Retail means the selling of the goods to the final consumer and provide them services so
that they can demand for the goods and can satisfy the needs and the wants of the customers.
Retail are the person who acts as the middleman and the intermediaries to provide the final goods
to the people in the different location. The retail company mostly includes the tangible goods for
the easy transferring and can reach the product on the time without delay. Fashion retail
company is the company who act as the middleman and the intermediaries between the
manufacturers who produce the goods and the customers who consume the goods. It helps in
building the healthy competition in the market as the fashion retail companies has large number
of competitors and have the good pay to the employees which help them to influence and do
work in the fashion retail company only.
Introduction to the company
Primark company is the biggest fashion retail company and had its headquarters in the
United Kingdom and London. The company has various retail shops in the UK at the different
places so that the consumer can easily purchase the products. The company was founded in the
year 1969 June and was get populered in a very less time. The products sold by the Primark
Company is in wide range including the products of Baby, womenswear , Menswear, foot wears,
make up product and many other things at one place. The company has over the 370 stores in the
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12 countries and the products are sale on the large scale. In the year 2014 the company starts
selling the make up products and in the year 2018 the company starts selling the vegan snacks.
The Primark company charge the price lower than the price which is usually charged from the
individual. The company was also contributed to the fast fashion trends for the development and
for the easy selling of the products across the country. Primark offers the discounts and provides
the trendy clothes to the customer in a very low rate which help the company to increase its
revenue in a very low period(Clegg, Kornberger and Pitsis, 2015). The company brings the new
trends every year and make the individual attracts to purchase it. The Primark company do not
have the online retail shops because of the high competition in the market and because of the low
prices Primark company is able to do the saving and able to provides the goods in bulk to the
retail shops across the nation.
Key relevant changes within the UK fashion retail
Every organisation has its different strategies and to adopt the strategies various
approaches are adopted by the organisation to run the business in the long run and can able to
generate the benefits easily in an organisation. For the relevant changes in the organisation The
PESTLE analysis was done by the company so that the overall efficiency of the company can be
easily determined.
Political Analysis refers to the analysis in which the initiatives of the government affects
the firms financial position. The Government of the UK was forecasting in the downfall of the
Primark company in future. The government start increasing the taxes and the Primark company
has to pay the heavy taxes so that the business can run easily.
Economic analysis refers to the risk create in the environment because of the different
trends. It help in identifying the how the recession and the boom period in the organisation affect
the business. The policy by which the Primark company is affected is the monetary and the fiscal
policy of the organisation. GDP is contributing more in Primark and the low exchange rates of
the company for the easy import and the export so that the different countries may able to
purchase them.
Social analysis refers to the demographic changes that can occurred in the market and
influencing the buying perception of the products in the market. It help in building the trust with
the customers by developing new products also in the market. Primark most important thing is to
focus on the taste and the preference of the customers according to the recent trends. Primark
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company find its social changes difficult when there are large number of competitors in the
market.
Technological analysis refers to the analysis which help in adopting the new and the
latest technologies of the organisation. It helps in improving the qualities of the product and
easy transaction can take place in the organisation. By the proper use of technologies by the
Primark company they may lower the chances of the risk in the future and the uncertainties of
the economic and social changes are minimized. The security of the Primark company is very
high as they are using the advanced software and the cameras(Cleophas, 2019).
Legal analysis refers to the laws which are followed by the companies in term of tax,
tariffs , trades and salaries. Over use of the labours which helps in maximizing the strength of the
organisation which are against the Law. Primark company should give importance to the right of
the buyers and proper delivering of goods to the customer. Primark focuses on the relationship
between the supplier and the producer relationship, customer organizational leadership and the
employee relationship which are to be followed by the company.
Environmental analysis refers to the focuses on the corporate social responsibility of the
organisation and should get easily affected by the environmental issues that are occurring in the
nation. The issues related to the environment are related to the ethics and helps in using the waste
resource so that the cost will be low and the company can earn the profit because they are
optimizing the low resources from the environment which helps in creating the profit in the
future and can use them in a proper manner so that benefits can raised in future.
Relevant changes within the micro environment
Micro environment has its affect in the business and the organisation so that the decision
and the factors affecting the components of the environment can easily by identify by doing its
SWOT analysis. SWOT analysis helps in finding the company strength, weakness, opportunities
and threats. Primark company SWOT analysis is described below:
Strength Weaknesses
 The biggest strength of the Primark
company is that the company provides
the employment for more than 50000
people all over the world.
 Slow economic growth of the Primark
company leads to the less overall profit
of the company.
 Sometime the goods provided to the
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 Advertising done by the Primark
company is done through the Word-of-
mouth which have less cost incurred in
promotion.
 Primark company pays the
compensation to the families who
suffered in the Rana complex incident
in Dhaka, Bangladesh.
 The strength of the Primark company is
that sale is increasing every year which
helps in generating the profit.
different nations so not have the same
qualities this may be identifies as the
weakness by not providing the same
qualities of products.
 One of the biggest weakness of the
Primark company is that the company
do not sell the product online which
decreases the revenue of the company.
 Primark sale the goods at the low price
which make the customer thinks that
goods are of the poor quality and does
not purchase by the customer which
helps in decreasing the revenue of the
company.
Opportunities Threats
 Primark company is continuously
focusing on the expansion of the
business in the other countries where
the retail shops of the Primark company
is not available.
 The shops of the Primark company
should also open in the middle east,
china and the India and the population
of these countries are high And can
easily purchase the products.
 Primark should increase its product in
the field of the sportswear so that the
company can earn the more revenues in
the future.
 Primark company has all of its stores
mostly in the Europe which helps in
generating the less income and the
growth of the company and have low
growth strategy (Rao, 2019).
 Primark company biggest threat is that
it does not have the presence in the
emerging markets which leads to
decline in the profit.
 Another threat of the Primark company
is that the company supply chain is
used to of the natural disasters which
affect the economy of the nation and
have the less growth.
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Suggest and discuss strategies and tactics that could be used
The various changes is the micro and the macro environment is faced by the retailers so
that the goods can be produce at the minimum cost and helps in increasing the efficiency and
helps in increasing the profit in the organisation. It helps in making the good place in the market
which can run for long run.
Technological change
It has been examined from the technological change that internet has its effect on the
macro environment and it also helps in dealing with the changes that occur in the environment
and it helps in the developing of the economy:
 Primark Company needs to deal with the technological change and should use the
innovative machineries so that the customers get attracted in an easy way(Dalkir, 2017).
With the use of the innovative machineries attractive goods are produced by the company
on the demand.
 Primark company should also adopt the leadership strategies which help in minimizing
the cost of the organization and helps in reducing the cost by improving the qualities of
the product sell by the Primark company.
There are many issues and the challenges which are faced by the Primark company in the retail
sector. There are the various factors which helps in developing the uncertainties in the Primark
company. There are some of the strategies of the Primark company which affect the business.
Wheel of Retailing
It helps in identifying the changes in the institutional areas and helps in taking the
decisions when the innovation takes place in the retail area. It helps in describing the life cycle of
the retail company. Its helps in attracting the customers and the individuals who are cost
sensitive.
Establishing and penetrating in market-It helps in paying attention in the market which
have low cost and the profits margin are also low which results in the cost cutting of the prices.
Expanding in market-It helps in enhancing the sales in and helps in increasing the
profitability of the organisation.
Stabilized business model attracting margins- It is the stage when the company is in the
position of using the high cost strategy which helps in attracting the customers.
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Entry of another retail rivals-There are large numbers of the competitors that makes a
good competition between the companies.
Conflict theory
The organisation faces the competition in the market and the conflict also arises because
of the limited uses of the resource that makes the companies to stand in front of the each other. In
the Primark theory the conflicts are used to resolve the problems and helps in gaining the
profitability which helps in having the good competition in the market. Conflict theory arises are
sometimes healthy to the organisation which helps in building the competition and helps in
bringing the new innovations in the society(Roggeveen, and Sethuraman, 2018). Low resources
are the chances by which conflict can be raised which help in the efficient use of the resources
and the productivity level of the society will increase. In the Primark company there is a conflict
in the social and the economic tools which help in making the inequality in the organisation and
helps in creating the chaos which affect the economy. The theory creates a conflict between the
different groups which sometimes leads to the decrease in the profitability of the economy on the
large scale.
Recommendations
Some of the recommendations of the Primark company is described below:
 Primark company is using the different channels of the distribution which helps in
increasing the productivity and helps in enhancing the profitability of the organization so
that the business can run for long period.
 The company should use the different technologies which help in enhancing the sales of
the organization so that the customer get attracted in an easy way and help in increasing
the productivity level of the organisation.
 Primark company should use the effective pricing strategies techniques so that customers
get attracted easily and help in providing the quality of goods to the customer so that the
company can earn the profit and can easily build the trust in the organisation.
 More promotional techniques is used by the Primark company so that they can attract the
customers as the company spend less on the advertisement which make the customer less
attractive.
 Primark company will get benefited if the company as its helps in narrowing the market
and helps in providing the competitive advantage and help in increasing the profit level.
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Company can satisfy the demands of the people by gaining the competitive advantage
and help in attracting the customers.
CONCLUSION
From the above report it has been concluded that the Primax company is the successful
retail company in the United Kingdom. The company covers the large space in the market in a
very less time and increases the revenue. The company has the strong market position and build
the reputation in the market which helps in increasing the efficiency of the organisation. In the
Above report companies efficiency is found out by doing the SWOT analysis and the PESTLE
analysis of the companies is done to see the factors affecting the business and should take the
measures to correct them. Various theories of the organisation at the macro level is done like the
conflict theory, wheel of retailing theory and the technological change of the organisation is
studied out to increase the productivity in the market and help in building the good relationships
with the different retail companies existing in the different nation.
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REFERENCES
Books and Journals
Bowen, D. E., 2016. The changing role of employees in service theory and practice: An
interdisciplinary view. Human Resource Management Review. 26(1). pp.4-13.
Clegg, S. R., Kornberger, M. and Pitsis, T., 2015. Managing and organizations: An introduction
to theory and practice. Sage.
Cleophas, C. and et. al., 2019. Collaborative urban transportation: Recent advances in theory and
practice. European Journal of Operational Research. 273(3). pp.801-816.
Dalkir, K., 2017. Knowledge management in theory and practice. MIT press.
Rao, S. S., 2019. Engineering optimization: theory and practice. John Wiley & Sons.
Roggeveen, A. L. and Sethuraman, R., 2018. Understanding the JR heritage, publishing in JR,
and the evolving retail field. Journal of Retailing. 94(1). p.1.
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