Primark Takes on Burberry and Alexander McQueen The clothing retailer Primark, a value range of products,...
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Primark Takes on Burberry and Alexander McQueen The clothing retailer Primark, a value range of products, would compete directly with designer labels such as Burberry and Alexander McQueen.50 Primark began as Penneys in Dublin, the Republic of Ireland in 1969, where it still operates under the same name, and by late 1971, there were 11 stores in the Republic of Ireland. Primark's base increased rapidly when it entered Great Britain in 1973, and by the end of the following year the total number of stores had risen to 22. By 2000, with continued expansion and acquisition Primark had a store count of 108. The clothing retailer's presence reached Spain in 2006; the Netherlands in 2008; Portugal, Germany, and Belgium in 2009, Austria in 2012; France in 2013; and most recently the USA in 2015. This was made possible with Primark's considerable planning and goal setting. It built on the fastfashion trend that had hit the fashion industry and prided itself on encouraging its employees to set their own personal goals and to make use of the training programs offered. Primark is one of the most sought-after retail employers. It has continually had more applicants for jobs than available positions. Primark, like other organizations, has al purpose, people, and a structure to support and enable those people in carrying out that purpose. Primark is one of the fastest-growing chains in Europe. The company has 287 stores with nearly 11 million square feet of retail space and employs more than 54,000 people in its stores throughout the world. The business, which prides itself on customer satisfaction, offers one of the best salary structures in retail, but demands the very best; and gets the best by hiring the brightest individuals interested in a retail career. Goal setting by employees is coupled with recognizing strong organizational skills by management. Primark's Management Trainee Program is aimed at graduates, with key training related to buying because the company sources its products from around the world. Interestingly, Primark is one of the few retailers that do not have an online presence. The company believes that it does not need an e-commerce site. Primark is owned by Associated British Foods and it outlined the outlook for its various business divisions in its 2014 Annual Report. In terms of planning and decision making, the decision not to set up an e-commerce site makes perfect sense. Given the fact that many of its fast fashion clothing products begin at as low as US$4, it would take an enormous number of sales to offset the setup costs. Primark also does not advertise. Instead it relies on public relations, word of mouth, and the strategic positioning of key stores. Planning is focused on the ability to offer fashion products at the lowest possible price. At the same time, it attempts to ensure that it operates within an ethical framework. Primark has membership in the Ethical Trading Initiative, and it also supports local charitable organizations and community projects. It is also going through the process of replacing plastic carrier bags with paper bags. Following criticism in the early 2000s due to its use of Asian factories as the primary source of its products, Primark decided to attain ethical trading status. Since 2014 Primark continues to improve labor standards across its supply chain in China. Goals included increasing wages, delivering productivity benefits, and creating long-term and lasting improvements. In order to meet these goals, Primark hired. Progress has been encouraging, and realistic solutions to basic problems have begun to yield major successes Primark's planning approach has clearly been working. According to research 75 percent of a consumer's decisions are made in three seconds at the point of sale. Primark focuses on this and pays particular attention to instantly hooking consumers with its shop fittings, layout, and visual merchandising. Primark's planning for the future is well underway. Discussion Questions 1. Write a detailed mission statement including all its essential elements. 2 Discuss Primark's decision to bypass e-commerce from a strategic perspective. 3. How would the Lebanese retailers cope with competition from an expanding retailer like Primark, if it decides to enter the Lebanese market? Primark Takes on Burberry and Alexander McQueen The clothing retailer Primark, a value range of products, would compete directly with designer labels such as Burberry and Alexander McQueen.50 Primark began as Penneys in Dublin, the Republic of Ireland in 1969, where it still operates under the same name, and by late 1971, there were 11 stores in the Republic of Ireland. Primark's base increased rapidly when it entered Great Britain in 1973, and by the end of the following year the total number of stores had risen to 22. By 2000, with continued expansion and acquisition Primark had a store count of 108. The clothing retailer's presence reached Spain in 2006; the Netherlands in 2008; Portugal, Germany, and Belgium in 2009, Austria in 2012; France in 2013; and most recently the USA in 2015. This was made possible with Primark's considerable planning and goal setting. It built on the fastfashion trend that had hit the fashion industry and prided itself on encouraging its employees to set their own personal goals and to make use of the training programs offered. Primark is one of the most sought-after retail employers. It has continually had more applicants for jobs than available positions. Primark, like other organizations, has al purpose, people, and a structure to support and enable those people in carrying out that purpose. Primark is one of the fastest-growing chains in Europe. The company has 287 stores with nearly 11 million square feet of retail space and employs more than 54,000 people in its stores throughout the world. The business, which prides itself on customer satisfaction, offers one of the best salary structures in retail, but demands the very best; and gets the best by hiring the brightest individuals interested in a retail career. Goal setting by employees is coupled with recognizing strong organizational skills by management. Primark's Management Trainee Program is aimed at graduates, with key training related to buying because the company sources its products from around the world. Interestingly, Primark is one of the few retailers that do not have an online presence. The company believes that it does not need an e-commerce site. Primark is owned by Associated British Foods and it outlined the outlook for its various business divisions in its 2014 Annual Report. In terms of planning and decision making, the decision not to set up an e-commerce site makes perfect sense. Given the fact that many of its fast fashion clothing products begin at as low as US$4, it would take an enormous number of sales to offset the setup costs. Primark also does not advertise. Instead it relies on public relations, word of mouth, and the strategic positioning of key stores. Planning is focused on the ability to offer fashion products at the lowest possible price. At the same time, it attempts to ensure that it operates within an ethical framework. Primark has membership in the Ethical Trading Initiative, and it also supports local charitable organizations and community projects. It is also going through the process of replacing plastic carrier bags with paper bags. Following criticism in the early 2000s due to its use of Asian factories as the primary source of its products, Primark decided to attain ethical trading status. Since 2014 Primark continues to improve labor standards across its supply chain in China. Goals included increasing wages, delivering productivity benefits, and creating long-term and lasting improvements. In order to meet these goals, Primark hired. Progress has been encouraging, and realistic solutions to basic problems have begun to yield major successes Primark's planning approach has clearly been working. According to research 75 percent of a consumer's decisions are made in three seconds at the point of sale. Primark focuses on this and pays particular attention to instantly hooking consumers with its shop fittings, layout, and visual merchandising. Primark's planning for the future is well underway. Discussion Questions 1. Write a detailed mission statement including all its essential elements. 2 Discuss Primark's decision to bypass e-commerce from a strategic perspective. 3. How would the Lebanese retailers cope with competition from an expanding retailer like Primark, if it decides to enter the Lebanese market?
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1 PRIMARKS DETAILED MISSION STATEMENT The consistent planning and goal setting of primark made it to ... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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