Retail Industry And Its Aspects In UK


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  • Level: High school
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Question :

This assessment will cover the following questions:

  • Develop your understanding of contemporary developments in retail theory and practice and how these contribute to organizational success.
  • Primark is the clothing company Consider a complex issue in retail theory and practice and propose feasible alternative options for consideration.
  • Evaluate and discusses strategies and tactics that could be used by the Primark to respond to the major changes occurring in the fashion clothing market.
Answer :
Organization Selected : PRIMARK


Retail defined as an activity of making sales of goods and services related to the daily use to the customers by using several distribution channels with a main motive of earning profits by increasing sales (Banerjee, 2017). Whereas, retailing refers to the long input-output chain which involves production and distribution of goods and services to the customers or households and retailers are termed as a terminal member of a value chain who supply goods directly to the potential customer's. In the modern era, retail companies meet the people requirements through effective supply chain. For the purpose of retailing, various retail stores are present in the market through which economic transactions takes place and starts consumption of goods and services. In this report PRIMARK is chosen which is an Irish clothing retailer that operates their businesses in many countries such as Austria, Belgium, Germany, Ireland, Portugal, Spain, Netherlands as well as UK. It was firstly opened in June 1969 in Mary street and deals in clothing, cosmetics as well as housewares products category. In this report study about the changes in UK's retail fashion clothing market as well as suggest strategies and tactics that could be implemented by retailers to react on the changes.


a) Identify the key changes in the UK fashion clothing market.

Background of the retail marketing: Retail marketing define as a process through which retailers encourage interest as well as awareness of goods and services in order to generate sales form their customers. It is basically known as a commercial activity that facilitate an opportunity to buy goods and services from the numerous merchants. Now a days, retail marketing is a complex and different field that includes all kinds of selling of products and services (Berry, 2016).

There are basically two types of distribution channels such as traditional and new or modern. In traditional distribution channel, retailers, wholesalers, distributors etc. are involves for the purpose of selling goods and services to the customers. Whereas, modern distribution channel, many businesses starts to adopt several channels and methods for distributing goods and services which includes intermediaries selling, direct selling, supply chain as well as dual distribution and internet or websites (Dholakia, 2018). For instance, E-commerce consider as a distribution channel which can be used by PRIMARK in order to distribute their goods and services across the globe. In order to use that a company face many problems such as an organisation is necessary to follow international laws related to trade of different nations where it sale their products.

In speedily growing market of fashion retail industry, it is necessary for retailers as well as PRIMARK to active their figures on the market wave for the purpose of remaining familiar and relevant with them. There are some recent trends in UK fashion clothing market which influence the business operations of PRIMARK (New trends in fashion retail, 2019). It can be considered as below:

  • Change in the customers taste and preferences: It seems that recently the retail fashion clothing market is rapidly changes because of the changes in customers needs and wants which will effect the PRIMARK'S sales as well as operational activities. Most of the individual attract towards the latest market trends and well as innovative technologies which are new in the market this will impact on the company's profit and growth as they required continuous innovation and improvements.
  • Instant fashion recognition: In the future market of fashion it will become more important as new techniques that will make it possible to images on every type of clothings which are identified as well as buy. In UK snap fashion, style eyes from Ireland, slyce in Canada are considered as a start ups which deals in that kind of technologies.
  • Buying behaviour of customers: In retail fashion clothing industry, buyers are price conscious as well as some are quality focused then a company PRIMARK needs to use various kinds of products along with the low prices as well as better quality in order to satisfy the different needs of the customers. This will mainly effect company's sales and profit (Fernie, 2018).
  • Social shopping: It is related to the social media that becomes a new store fronts through which marketers or leaders are creating links from social networking sites such as Facebook, Instagram as well as linked to retail sites also in order to take some kind of commission amount. It is lies between 3 to 20% commission charges that depends upon the profit margin as well as infrastructure.
  • Retail engagement: It is referred as a customer relationship management programs in which retailers are getting to know customer preferences, behaviour as well as taste in order to become spontaneous in how they engage more. retailer’s need to insights many ways and methods of customer engagement for getting high benefits over mainly three terms like convenience, entertainment and information. This will help in knowing effective relationships with their customers that they needed while distributing goods and services as per their requirements.
  • On sale for regular price: In the UK consumer price index has increased by 29% over last few decades but retailer price for designer fashion are increase approx 60%. in UK only 55% goods are purchased at full retail amount while it is only 33% in United States as well as it is reported that the sales of high street retailers are increased as double from past years.

The market of fashion clothing in retail industry has been and is undergoing significant changes that are mainly due to the globalisation, rapidly changes in customers trends as well as competitors strategic decisions (Ge, 2019). Mainly, the UK retail market has experienced the significant growth which has focused high attention towards the acquisitions in the field that is one of the most competitive marketplace in Europe. It results in high concentrated power of large retailers of UK which includes PRIMARK. The major challenge is the globalisation as large number of retailers are sourcing globally with a motive of selling goods and services with high quality as well as competitive prices within the market. PRIMARK is basically challenged by their competitors such as Marks & Spencer, NEXT etc. as they gives discount their customers which is not facilitated by PRIMARK.

In retail fashion clothing market, it is forecast to exceed entire growth of retail sectors between 2017-2022 as it is termed as a third quickest healthy sector in comparison of health and beauty and food and grocery (The UK clothing market 2017-2022, 2019). Awkward customers spending will be under-forced as clothing market will stay robust with 16.6% growth rate which is estimated over next five years rather than 12.7% over past. Mainly customers are highly concern towards the fashion trends, desires and appearances which will help in growth drivers for treating and satisfying them in a successful manner.

Whereas, PRIMARK is on the track of overtaking Next which is a UK's second largest clothing retailer this year after strong sales in winter. The clothing chain said that a company had benefited as it kept prices steady but many competitors had raised prices in response of increasing costs that are caused by fall in the value of Pound since the Brexit agreement. According to the Kate Ormrod, as an analyst at Global data retail said that PRIMARK has strong end of 2017 in UK after 10% total domestic growth in last financial year which means it was likely to overtake Next. As the company holds 6.9% share of clothing market by value, in comparison of Next at 7.1% and M&S remains UK's largest clothing retailer with 8.1 (PRIMARK primed to overtake Next as UK's No 2 clothing retailer, 2019)

The UK retail fashion sector:

According to the research report, it seems that UK fashion market could lead decrease in their value by £350 million in next one year while all shopper number have increased by 228000 as well as fashion market decreased 0.4% at the same time. It can be viewed by the graphical record which are shown below:

(Source : UK fashion sector, 2018)

It has been interpreted that form the above graph, 2/3 of fashion market of clothing, footwear as well as accessories sold-out in past time period were at full retail price through which the sales value is reduced by £443 m (UK fashion sector, 2019).

b) Suggest and discuss strategies as well as tactics that could be used by the retailer in order to responds on changes that occurs in fashion clothing market.

Various strategies can be adopted by PRIMARK to responds positively towards the market changes which are currently available in the retail fashion clothing market of UK. These kind of strategies and tactics assists to the company in order to formulate and adopt changes in an effective way as well as fulfilling the demands of customers. In addition, retail strategy is considered as a holistic market plan that is related to the goods and services to attract various potential customers (Goworek, 2018). As all these strategies are developed for distributing products and services through retail outlets. While choosing retail outlets there are many forces or aspects that influence the PRIMARK'S sales that includes price, place, promotion, product as well as incentive mechanism for retailers. With keeping in the views of all factors a company need to formulate some attractive strategies and tactical plan that are considered as follows:

Strategies that can be used by retailers in order to response changes:

  • Customer relationship management strategy: This is associated with the essential approach which are in used by many retailers to manage the interactions of customer's with their brand. This will assist in the reaction towards the trends of retail engagement within the retail fashion clothing market (Hagberg, 2015). This is most appropriate to know about the customer's history as well as past experience and analysed it to create a positive relationship with them. For this, PRIMARK use Email marketing option in order to give latest trends and informations which are convenient for them.
  • Technological development: Within the context of PRIMARK as a retailer of UK's clothing market, they can adopts this strategy to provide their products towards the new techniques of instant fashion recognition and promote their street market fashion. This will assist PRIMARK by making possible to print images on many clothings that are identified and purchased by customers. The company can use snap fashion as a technique of image recognition.
  • Go extra miles for their customers: It is also termed as a strategy for retailers as this will assist in distributing huge amount of products and services along with a great experience of services. In order to become a successful leader it needs to deliver the world class services as going extra miles to serve according to the customers expectations and develop trust and loyalty for a long period of time (Hristov, 2015).
  • Product development: While a company PRIMARK thinks to responds towards the retail clothing market trends of UK related to the customer taste and preferences. In order to that retailers should adopt product development strategy which is necessary to satisfy the customers demand and requirements within the time period that directly assist in increasing the company's sales, productivity as well as profitability.
  • Leverage social media: As per the retail marketing and social media marketing there are numerous platforms that are usually exercised by retailers in order to responds towards the trends of social shopping of retail fashion clothing market which is detailed studied above. In social media marketing includes Facebook, Twitter, Instagram as well as Pinterest now a days, it is more in trends because these are considered as a customer centric channels (Nagle, 2017). Pinterest has benefited of being a people surface as person's are scroll as well as search many more things related to their requirements or which they want to buy it and compared with their reviews and ratings in order to purchase best one among them. In addition, it is also beneficial for retailers like PRIMARK if they want to gain high visibility on networking sites related to their brands then they require to pay for it.

    Also Read :- Management of Entrepreneurship, and Various Issues in it

Tactics that can be considered by retailers in order to respond on retail market trends in fashion clothing sectors:

Now these days, customer's are considered as a king of the market so a company requires to satisfied them by providing goods and services according to their requirements. For this purpose a company can implement various strategies like analysing market competition, PRIMARK can adopt market analysis for knowing customers demands and expectation (Naidoo, 2018). In order to that, a company can prepare a tactical developmental plan in order to know about the strategies related to price, place as well as promotion because all these things helps in accomplishing the objectives of a business organisation.



Statement within the context of PRIMARK


It refers to those items which are being sold in the market as it must deliver a minimum level of performance. Product is termed as tangible and intangible items which are served to the customer's as per the needs and requirements of consumers (Obayi, 2017). Considering right type of product range assists in making appropriate decisions towards the market trends and fluctuations.


Product is related to the requirement of retailers which they want to produce and distribute as per the customers requirements and satisfy their desires effectively. It is essential for getting huge profit margin and create a successful growth and development of business. For responding towards the market trends retailers of PRIMARK can adopt product development strategy in order to deals in numerous range of products and services which have distinct features, price, quality as well as design that will be most suited according to the customers demand.


It is considered as a value of products and services that totally depends on the production cost, customers ability to pay, demand and supply of goods as well as segment targeted. Pricing can be used to differentiate with competitors and enhance brand image in market as it tied up with the entire business plan.

It is related to the payment of products as it must be consistent to meet the company's requirements and the price of PRIMARK'S products are required to be affordable by all customers which provide some value to the company. It could be different as per the product quality which is easily purchased by different users. As retailers of PRIMARK can choose penetration pricing strategy to get advantages of large customer base as mainly people are focusing on products as well as quality of products (Perera, 2018).


It refers to the selling point as good distribution channel is required for making products eye catching in order to sale more and more units of products (Sivapalan, 2017). As it is also known as the location is the mantra of a successful retail businesses as retailers required to choose premium location for their products distribution.

For getting a high presence in the marketplace a company PRIMARK needs to provides right place or location for their customers in order to buy products according to their own wishes. To avail products in the market a company can moves towards the physical stores either online and offline, catalogue as well as online websites as it helps in making customers continent while they order.


It is associated with the activities that have been taken into consideration while making products and services known to the customers. Retailers can use word of mouth, advertisement, contests, direct marketing as well as many other tools for promoting their products (Pantano, 2018).

This is the most helpful tactic that helps in promoting products and services in the market as well as aware huge number of users towards benefits of products (Thompson, 2017). For promoting the products of PRIMARK retailers can adopt social media marketing and networking sites which assists in facilitating more awareness as well as information by using several ways like Pinterest, Facebook as well as Instagram.



For PRIMARK there are some recommendations which are considered as follows:

  • Through developing an application as well as software for online shopping facility, PRIMARK can provides to their customers as now a days people prefer online shopping because of lack of time.
  • By using Penetration pricing strategy a company can get increment in their potential customers because customers are more centring towards the products price and quality.
  • Adopting instant recognition technologies as well as social media marketing promotional strategy, a company can raise sales as well as productivity along with the attracting large customers.


From the above report it has been concluded that retail industry in UK are rapidly changing which impacts on the retail businesses of the country at a great extent. Retailers formulate appropriate theories and practices in order to responds towards those changes and make a successful and sustainable growth of business. There are various changes such as customers taste and preferences, instant fashion recognition, social shopping, customers buying behaviour etc. which influence the company's sales and profitability. As retailers implement several strategies in responds to these changes such as product development, technological development, leverage social media, customer relationship strategies and so on that helps in gaining the market position as well as increase sales and revenue. There are a tactical plan also which includes some aspects such as product, price, place, promotion etc. which are used by retailer’s to design a basic plan for getting better growth and success.

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