Primark is a fashion Retailer in Europe which trades as Penneys in Ireland. It has 223 stores currently operating in Ireland, UK, Spain, Germany, Portugal, Netherlands and Belgium with 38 stores in Ireland. There are plans to open more stores in the next few years particularly in Germany. Primark now operates from 7.2 million sq. ft. of retail selling space with a minimum space of 10,000 sq. ft. and has 30 stores trading from over 50,000 sq. ft. of which 8 trade from over 70,000 sq. ft. Penneys sell low priced merchandise with their own brand names such as Atmosphere, Active, early days and Denim co. Target Market
Penneys targets its merchandise to women, men under the age of 35 and children. Its core market is young women with almost half the sales being in the women fashions department Situation Audit
* Market Attractiveness analysis
The retail market which employs 12% of the workforce in Ireland began to decline in 2008 due to a downturn in the economy worldwide. Unemployment levels within the Irish economy increased in 2008 by 1.9% from 2007 and consumer spending decreased. The current unemployment rate in Ireland is 14.2% meaning consumer spending continues to decrease. The National Consumer Agency in Ireland carried out a survey in February and found that 22% of those surveyed indicated that they intend to save more during 2011 this indicates consumers intend to spend less in the retail sector. Based on the year 2005 the value of sales in retail market in Ireland: 2008- Declined by 4.5%
2009- It declined by -18%
2010- It began to stabilise by declining by -2%
2011 – It is estimated to decline by -3.3%
In the clothing, footwear and textiles industry the annual percentage change based on 2005 in September 2011 was -4.9%.
These figures illustrate how retail Sales are continuing to fall making it difficult for...