primark
A critical analysis of Primark
AREA OF STUDY
Primark is a company which sells clothing, accessory, shoes and home products. Its first store opened in Dublin in 1969 and expanded significantly in the later years. In 1973, Primark moved into Great Britain and now have 152 stores in the UK (Primark company website, 2010). Primark as one of the important clothing retailers in the UK, overtaking Asda and became the NO1 low price retailer in 2009 (Hall, 2009).
Children clothing are become more and more important in the recent years because the country 's fertility rate booms (Askbaby, 2010). Primark increased its market share in the children clothing which could help in boosting the whole sale (Fletcher, 2007). According to Smithers, (2011), parents in the UK are forking out on average £764 a year on the latest attire for their kids, with 6% spending up to £1,500. In my point of view, this is a very important opportunity for Primark to boost its sales.
PLC STAGE
Product life cycle include five stages. In the case of Primark, it is in the beginning of maturity stage. According to Kotler and Armstrong (2012), there are several features in this stage. I will investigate the features relate to the theory and fact as follow.
Firstly, when a company in the maturity stage, it will appear slow down in its profit. Associated British Food is a company which owns Primark. According to its website, there are some data shows Primark’s revenue and operating profit from 2006 to 2011. However, there is no more financial report before 2006 in the AB food website, although some of data could be found before 2006 on the internet but it was from unreliable website. At last, I decide to analyze the statistic from 2006 to 2010.
According to figure 1 (page 2), figure 2 (page3) and table 1 in appendix. We can see although the revenue and adjusted operating profit are increase considerably. As the matter of fact, the operating profit in 2008 is declined from 12.1% to 10.9% and the
AREA OF STUDY
Primark is a company which sells clothing, accessory, shoes and home products. Its first store opened in Dublin in 1969 and expanded significantly in the later years. In 1973, Primark moved into Great Britain and now have 152 stores in the UK (Primark company website, 2010). Primark as one of the important clothing retailers in the UK, overtaking Asda and became the NO1 low price retailer in 2009 (Hall, 2009).
Children clothing are become more and more important in the recent years because the country 's fertility rate booms (Askbaby, 2010). Primark increased its market share in the children clothing which could help in boosting the whole sale (Fletcher, 2007). According to Smithers, (2011), parents in the UK are forking out on average £764 a year on the latest attire for their kids, with 6% spending up to £1,500. In my point of view, this is a very important opportunity for Primark to boost its sales.
PLC STAGE
Product life cycle include five stages. In the case of Primark, it is in the beginning of maturity stage. According to Kotler and Armstrong (2012), there are several features in this stage. I will investigate the features relate to the theory and fact as follow.
Firstly, when a company in the maturity stage, it will appear slow down in its profit. Associated British Food is a company which owns Primark. According to its website, there are some data shows Primark’s revenue and operating profit from 2006 to 2011. However, there is no more financial report before 2006 in the AB food website, although some of data could be found before 2006 on the internet but it was from unreliable website. At last, I decide to analyze the statistic from 2006 to 2010.
According to figure 1 (page 2), figure 2 (page3) and table 1 in appendix. We can see although the revenue and adjusted operating profit are increase considerably. As the matter of fact, the operating profit in 2008 is declined from 12.1% to 10.9% and the
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