Primark is a fast fashion retailer known for its affordable trendy apparel and accessories. It has expanded successfully since opening its first store in 1969, now operating in several countries. Strengths include a good supply chain and social media marketing. Weaknesses include cluttered stores and lower perceived quality. Opportunities exist in improving the online and in-store shopping experience. Threats include competition from similar retailers. A SWOT analysis is provided.
3. • History
• 1969 – First store, Penneys, opened in Dublin
• Arthur Ryan, Paddy Prior, Garfield Weston
• 1973 – UK and JC Penney
• Expansion
• 1990s, fast fashion, and Asian garment production
• 2006, Spain, 289 stores
4. STRENGTHS
Fast fashion retailer offering affordable trendy
apparel, accessories
Good supply chain policy and has started to pay
workers a living wage
Marketing plan includes extensive use of social
media
Offers products that suit lifestyles such as fitness
apparel and homeware
WEAKNESSES
Stores cluttered with lots of displays and racks
of clothing. Daunting for first time buyers
Lower price implies lower quality; no sign of
exclusivity
Lack of e-commerce website
Targets only the younger age group
5. THREATS
Other brands similar to Primark offer similar low
quality, low priced apparel ex: H&M, Forever 21
Lack of interactive shopping experience
Consumers are slow to accept new entrants in the
market space. Ex: Target
Challenge to find affordable retail space that
complements Primark’s low prices
OPPORTUNITIES
Launch e-commerce website
Improve layout of store and in – store experience
Develop product lines for older markets
Use celebrity endorsements to grab North American
shoppers’ attention
6. Political –New liberal
government, possible
policy to boost
economic growth.
Socio-cultural – offer
a product line that
appeals to the diverse
Canadian population,
fits lifestyles, recession
Economic – Canada is
in a recession; slow
growth and economy
contracted by 1% in the
first two quarters.
Technology – use of e-
commerce to increase
multichannel
distribution and
interactive technology to
enhance shopping
experience
7. • Set up costs are high for new companies
Threat of new entrant
• Supplier power is low because Primark
has good relationship with suppliers and
seeks lowest ones
Supplier Power
8. • Buyers have a lot to choose from due to presence of
many retailers offering low cost, trendy clothing so
their ability to switch to another competitor is high
Buyer Power
• Chances of another retailer offering the same type
of product is moderate, Primark also sells
homeware and confectionery
Threat of substitution
• Presence of other fast fashion retailers means there
is moderate rivalry based on the low cost, trendy
fashion business model
Competitive Rivalry
9. • Canadian Apparel and Footwear market have
growth by 14.9% in last 5 years.
• Primark’s success in international market.
• Primark’s entry in American Apparel market.
10. Cost leadership and product leadership
Major target Millennials and people
earning under $25000 annually
Competitors target market
15. Fashionable apparel- all categories- lowest prices
More progressive mission statement
Bangladesh, 2013
Promoting wasteful, throw away culture
Competitively priced apparel
Sustainable environmental and social effects
16. Highly focused and coordinated
Marketing Strategies are practical
Stress on collecting accurate data
Timely implementation of all marketing
policies and strategic plans
17. Fast fashion retailer
Produce in huge quantities
Trickle down effect
Men’s, Women’s and Children’s category
Cost based Pricing
Low mark ups
Manufacture garments effectively and
efficiently
18. Relies mainly on “word of mouth”
Focuses on Social media platforms
Research
Sample
Approval
Production Shipment
In store
Promotion
Facebook Twitter Instagram
Likes – 4,334,749 Followers – 126000 Followers – 2.5 million
19. Competitive and Dynamic
Competitors Today and Tomorrow
New brands
21. Average sales per square meter is 479 pounds ($988)
Total square feet* AVG. sales per meter
(40,000*$988) $3, 952, 00000
22. Precise Planning
Minimum investment
Strategic alliance
Research on buying and spending habits
Editor's Notes
Canada is not on par with the US in terms of new foreign retailers - maybe SEARS Canada will lease space, not certain, takes time to get things organized …
Supplier power – Primark owns much of its own manufring facilities, in order to compete must stay low priced in order to beat out the competition
Lots of competitors in same category
Sub threat is moderate- for clothes its is high because of the presence of Forever 21 etc, but to find a similar store that offers lifestyle, confec and homewares is low
Comp rivalry – presence of other retailers offering similar product( i.e. trendy fashion) at comparative prices is high but primark offers lowest prices for its products
