Today retail is no more restricted to just selling goods to consumer. It is world's largest private industry with the sales of $ 6.6 trillion. The modern definition of retailing is "Retailing is the sale of goods and services to the ultimate consumer for personal, family or household use." In UK retail sector is the second largest employer, contributes 23% in GDP and accounts for the 35% of consumer expenditure. The sector seems to be mature in UK. But there are few emerging markets in which retail sector is still in its growth phase. The fashion industry is responsible for designing and manufacturing clothing. Fashion is a term used to describe clothing, footwear or accessories which are currently popular. Primarily the fashion industry is made up of the production of the raw materials, the design of fashion products, manufacturing of goods and then the sale of goods including advertising. Advancements in technology have played a crucial part in the development of the fashion industry. Clothing is now produced in large quantities using specialist machinery. The fashion industry is becoming increasingly globalized; many large retailers now use suppliers from all over the world. Fashion items are often produced in countries like China and India where materials and labor costs are lower. For example, Primark work with a variety of manufacturers from around the world to provide consumers with what they want. In this report, we are proposing a £1 million investment to expand Primark’s retail operations into the France market. This expansion involves establishing retail store in key location across France, building distribution Centre, introducing online retail platforms.
Brief description of the Company
PRIMARK is a leading retail and one of the ground- breaking affordable fashionable clothes retail outlet worldwide. Primark Ltd is a subsidiary of Associated British Foods Plc (ABF), and was the company's best performing business in 2005. It emerged as major force in the British retail industry, contributing through its low price value and great quality fashion products for everyone in society as a whole and leaves remarkable impact on social, environmental and ethical behavior of people. It was first established in 1969 in Dublin, Ireland and initially operated under the name Penneys. The company still continues to operate under the brand name Penneys in Ireland. By the year 1973, Primark had opened four out-of-town stores in Great Britain. In 1984 it made its first major acquisition of five Woolworth stores in Northern Ireland. In 1995 it acquired BHS one-up discount chain. In 1999 it acquired 11 properties from Co-op, including Reading. In 2000 it acquired 11 UK stores of C & A. In 2005 it acquired six stores from "Allders". In the same year it acquired 41 stores of Littlewoods. In 2006, it expanded into Spain and opened its first store there in Madrid. In December 2008, Primark entered the Netherlands market. In May 2009, the company also opened its stores in Portugal and Germany. In December 2009, the company opened its first store in Belgium.
Considering today’s scenario, Primark has 250 stores around the globe, currently operating in Austria, Ireland (38 stores branded as Penneys), UK, Spain, Germany, Portugal, Netherlands and Belgium.
Primark employs 36,000 people. 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. The largest Primark store is located on Market Street, Manchester, England occupying 100,000 sq ft (9,300 m2) of retail space, spread over three floors. PRIMARK is termed to be an absolute nuclear bomb in today's worlds the company is blown to be an epitome of the new fast fashion in retail generation which aims at providing the cat walk fashion at an affordable price to its customers. Primark is not about high...
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