Primark Business Structure
Lewis Higlett
12173530 FH106
Retail project
Alex Mortby
Contents
Structure and organisation in the retail sector.
The retail sector is at the end of the supply chain and it is where the product gets sold to the consumer, this is also known as the tertiary sector. Retailers tend to buy in large quantities from the manufactures to get lower prices which mean they can get a better profit when it is sold on.
The retail sector is changing because of technology, for example most companies have gone to the ‘clicks n’ bricks’ method. This means that they are using both a store and an online website also known as e-tailing. There are some companies that only trade online as it is a cheaper …show more content…
way of trading as they don’t have to pay rent on a store. The online part of a business is mainly used for convenience to their customers. The online grocery market is currently worth £6.5 billion but they are predicting it to be worth £15 billion by 2018. This is an indication of how much the online sector is growing as it is becoming more convenient for the consumer. But the food and groceries sector is worth £170 billion at this point in time. This shows that even though the online sector is growing it is still not as big as the stores themselves and shows that the consumers habits of going to the store is hard to break.
The retail sector is the largest industry within the UK as it employees roughly 2.77 million people in the UK. There is an estimated of 286,000 retailers in the UK and 83% of those retailers are small organisations that employ 10 or less people, that amounts to 29% of the retail workforce and they take 19% of annual turnover in retail businesses. The retail market is dominated by a small number of large retailers who have 500+ employees. These large companies employ 66% of all people in retail and they account for 69% of annual turnover in retail businesses. In retail 58% of the employees are female and 49% of all the workers work on a part time basis. The past recession has put a struggle on many retail businesses but online retailers, major supermarkets and value/discount store have all been showing sign of growth due to convenience and lower prices available.
Types of retail stores
Department stores – these stores normally contain a wide range of products including house ware, clothes, furniture and appliances. These stores normally strive for good customer service. An example of a department store would be Debenhams.
Supermarkets – these stores are a larger version of the tradition grocery stores they offer a wide range of food and household products. They offer competitive prices/discounts to be on top of their market. They tend to have 3,000 – 25,000 sq ft of sales area per store. An example of a supermarket would be Waitrose.
Convenience stores – these stores tend to have a smaller range of goods at higher prices as they are smaller stores. They are normally located in residential areas and are open for longer hours. Each store has a small catchment area and they target people who don’t want to go to supermarkets as it is easier to go to them. An example of a convenience store would be One-Stop.
Chain stores – a chain/multiple store must have at least 10 branches across the country and they must all have the same brand and central headquarters. Otherwise it would be a franchise. An example of this would be WHsmith.
How E-tailing is used
The internet is being used more within the retail sector as it is becoming a popular source of information and nearly every family has access to the internet now. This means that they can target a wider market a lot easier, it would make it a lot easier to get market research, promote goods and services. The internet allows the retailer a better communication method, expand on target market, extend product lines and deliver personal product offers. E-tailing has become the best way to shop for most people as it means that they can look for the best prices on certain products easier this means they save money and time which adds to the convenience of the internet. It is also available for the products to be delivered to the consumer’s house so that is even more convenient.
Customer service policies
The customer service policies/standards are:
Courtesy – this means that the employees will treat its customers in a friendly and helpful manner.
Confidentiality – this is where all information gathered by the organisation will be held in strict confidence. This means no information will be passed on to other companies or partners without permission this is required by law.
Communication – this means that they will respond to any comments or question from their customers and they must respond in a clear and precise manner.
Consistency – this means that they will treat every customer the same and to treat them to the best standards.
Handling complaints – this means that they have to handle all appeals and complaints in a fair and timely manner.
Customer returns policy – this is the policy that allows the customer to return a product within a certain period of time.
Legislations within customer service
The legislations within customer service are mostly there to protect the consumer’s rights. The legislations are affected by the law and the acts of parliament. The consumer rights act protects people from; faulty goods, counterfeit goods, poor service, problems with contracts and rogue traders. This means that if the consumer has any problem with bad service or a product and is not being treated right or fairly they can take the business to court for it to be resolved.
Store visits
The first store that I looked at was Topman, this store is classified as a high street fashion store. Topman’s target market is men aged between 13- 25 with a disposable income, this means that they will have to stay up with the fashion. Within the store they sell high quality products but at reasonable prices. Within the store they layout their products so it is easily seen. They normal have the newest and most fashionable items on mannequins to display a full outfit that can be purchased in store. This can be found in a window display or above the racking. Within the store they use as much space as they can to display their products, but they try to make it look spacious and not over packed. On the shelving they put one of every size out because they don’t have to sell large quantities to break even on the products.
The second store that I looked as was Academy, this store is classified as a designer outlet. Academy’s target is for men aged between 18 – 30 with high disposable income, this means that they will have to sell top quality and fashionable products. Within the store they sell high quality at expensive prices. They put the prices so high so that they are known as a premium brand, this means that their clothes are not common and only upper class men wear the clothes.
They use scrambling merchandising to have similar products together as it allows the customer to compare different styles to see which one they prefer. In the shop window they tend to have mannequins that are dress in their top selling clothes to draw people in as it will be with the recent fashion. Inside the store they make it very spacious so you can look at products from a far and they don’t need to sell many products to break even as the prices are very high.
The last store that I have looked at was Primark, this is a low cost fashion retailer. Primark are a lot different from the other two stores as they have a larger target market, as they have products for all ages both men and women. They also target people who have a low income but still want to keep with fashion. Within the store they sell budgeted products so they are not well known brands and normally have low quality so they can sell it at lower prices. Primark merchandise differently in the different sections of the store but it is always compacted onto the shelves and they put as many products out as possible because they have to sell a lot more than other stores to break even. In the window displays they mostly have pictures to display their products this is because they cannot afford to put their products on display like other high end retail stores.
Distribution channels in retail
There are three different ways that the products can take to get from the manufactures to the consumer. The way this happens is decide by the manufacture when the company is first started and they normally decide on what is best and easiest way to sell their product on.
The first channel that a manufacture can use is to sell it directly to the consumer. Many businesses start off selling straight to the consumer as it is easier due to the internet. For example many small businesses sell their product through popular online sites such as eBay or Amazon. This way of selling the product produces the biggest profit for the manufacture.
The next channel for the manufacture is to sell it through a retailer. This is where the manufacture sells its products to retailers in bulk for a wholesale price and then the retailer will sell it on to the consumer. The problem with this method is that the manufacture has no control over any pricing or promotion with the product. This is normally used if the manufacture sells the product to a small number of retailers or chain stores.
The last channel for the manufacture is to sell it through the wholesaler. This is where you sell it in bulk at a lower price than you would to the retailers, as the wholesaler will sell it on in bulk to different retailers which will then be sold on to the consumer. This means that the price per product will be very low when it gets sold to the wholesaler because both the wholesaler and the retail store need to make a profit for when they sell it on. Companies that sell through the wholesalers are the companies that have their products in thousands of different stores.
This is an image of the different distribution channels:
Customer service within Primark
The customer service desks within Primark stores tend to only be the tills where you go to pay. Example below;
The role of the customer service desk is to help customers with any problems that they have or where the customer can purchase some products. For example in Primark the customer service desk is the tills within the store, this is where you can make returns or exchanges.
The desk is not the only place to get customer service within the store they have staff that walk around the shop floor to answer any questions or give advice.
Primark tend to have more staff in the store depending on the time of year and their busiest times.
References
Barbara Farfan. (). Retail Definition. Available: http://retailindustry.about.com/od/glossary/g/retailterminolo.htm. Last accessed 25 october 2013.
The Guardian. (12/09/2013). UK online grocery sales forecast to double amid shakeup of retail market. Available: http://www.theguardian.com/business/2013/sep/12/uk-online-grocery-sales-forecast-to-double-retail-shakeup. Last accessed 31st Oct 2013.
World of Work . (November 2010 ). The job Market . Available: http://www.wowbc.co.uk/showcontent.php?id=153. Last accessed 31st Oct 2013.
Ellis-Chadwick. (2012). Internet retailing: the past, the present and the future. Available: http://oro.open.ac.uk/24815/2/. Last accessed 31st Oct 2013.
IMIS. (2013). Customer Service Policy Statement. Available: http://www.imis.org.uk/customer_service_policy. Last accessed 31st Oct 2013.
Karen Collins. (2009). Distribution Channels. Available: http://www.web-books.com/eLibrary/NC/B0/B66/074MB66.html. Last accessed 7th Nov
2013.
12173530 FH106
Retail project
Alex Mortby
Contents
Structure and organisation in the retail sector.
The retail sector is at the end of the supply chain and it is where the product gets sold to the consumer, this is also known as the tertiary sector. Retailers tend to buy in large quantities from the manufactures to get lower prices which mean they can get a better profit when it is sold on.
The retail sector is changing because of technology, for example most companies have gone to the ‘clicks n’ bricks’ method. This means that they are using both a store and an online website also known as e-tailing. There are some companies that only trade online as it is a cheaper …show more content…
way of trading as they don’t have to pay rent on a store. The online part of a business is mainly used for convenience to their customers. The online grocery market is currently worth £6.5 billion but they are predicting it to be worth £15 billion by 2018. This is an indication of how much the online sector is growing as it is becoming more convenient for the consumer. But the food and groceries sector is worth £170 billion at this point in time. This shows that even though the online sector is growing it is still not as big as the stores themselves and shows that the consumers habits of going to the store is hard to break.
The retail sector is the largest industry within the UK as it employees roughly 2.77 million people in the UK. There is an estimated of 286,000 retailers in the UK and 83% of those retailers are small organisations that employ 10 or less people, that amounts to 29% of the retail workforce and they take 19% of annual turnover in retail businesses. The retail market is dominated by a small number of large retailers who have 500+ employees. These large companies employ 66% of all people in retail and they account for 69% of annual turnover in retail businesses. In retail 58% of the employees are female and 49% of all the workers work on a part time basis. The past recession has put a struggle on many retail businesses but online retailers, major supermarkets and value/discount store have all been showing sign of growth due to convenience and lower prices available.
Types of retail stores
Department stores – these stores normally contain a wide range of products including house ware, clothes, furniture and appliances. These stores normally strive for good customer service. An example of a department store would be Debenhams.
Supermarkets – these stores are a larger version of the tradition grocery stores they offer a wide range of food and household products. They offer competitive prices/discounts to be on top of their market. They tend to have 3,000 – 25,000 sq ft of sales area per store. An example of a supermarket would be Waitrose.
Convenience stores – these stores tend to have a smaller range of goods at higher prices as they are smaller stores. They are normally located in residential areas and are open for longer hours. Each store has a small catchment area and they target people who don’t want to go to supermarkets as it is easier to go to them. An example of a convenience store would be One-Stop.
Chain stores – a chain/multiple store must have at least 10 branches across the country and they must all have the same brand and central headquarters. Otherwise it would be a franchise. An example of this would be WHsmith.
How E-tailing is used
The internet is being used more within the retail sector as it is becoming a popular source of information and nearly every family has access to the internet now. This means that they can target a wider market a lot easier, it would make it a lot easier to get market research, promote goods and services. The internet allows the retailer a better communication method, expand on target market, extend product lines and deliver personal product offers. E-tailing has become the best way to shop for most people as it means that they can look for the best prices on certain products easier this means they save money and time which adds to the convenience of the internet. It is also available for the products to be delivered to the consumer’s house so that is even more convenient.
Customer service policies
The customer service policies/standards are:
Courtesy – this means that the employees will treat its customers in a friendly and helpful manner.
Confidentiality – this is where all information gathered by the organisation will be held in strict confidence. This means no information will be passed on to other companies or partners without permission this is required by law.
Communication – this means that they will respond to any comments or question from their customers and they must respond in a clear and precise manner.
Consistency – this means that they will treat every customer the same and to treat them to the best standards.
Handling complaints – this means that they have to handle all appeals and complaints in a fair and timely manner.
Customer returns policy – this is the policy that allows the customer to return a product within a certain period of time.
Legislations within customer service
The legislations within customer service are mostly there to protect the consumer’s rights. The legislations are affected by the law and the acts of parliament. The consumer rights act protects people from; faulty goods, counterfeit goods, poor service, problems with contracts and rogue traders. This means that if the consumer has any problem with bad service or a product and is not being treated right or fairly they can take the business to court for it to be resolved.
Store visits
The first store that I looked at was Topman, this store is classified as a high street fashion store. Topman’s target market is men aged between 13- 25 with a disposable income, this means that they will have to stay up with the fashion. Within the store they sell high quality products but at reasonable prices. Within the store they layout their products so it is easily seen. They normal have the newest and most fashionable items on mannequins to display a full outfit that can be purchased in store. This can be found in a window display or above the racking. Within the store they use as much space as they can to display their products, but they try to make it look spacious and not over packed. On the shelving they put one of every size out because they don’t have to sell large quantities to break even on the products.
The second store that I looked as was Academy, this store is classified as a designer outlet. Academy’s target is for men aged between 18 – 30 with high disposable income, this means that they will have to sell top quality and fashionable products. Within the store they sell high quality at expensive prices. They put the prices so high so that they are known as a premium brand, this means that their clothes are not common and only upper class men wear the clothes.
They use scrambling merchandising to have similar products together as it allows the customer to compare different styles to see which one they prefer. In the shop window they tend to have mannequins that are dress in their top selling clothes to draw people in as it will be with the recent fashion. Inside the store they make it very spacious so you can look at products from a far and they don’t need to sell many products to break even as the prices are very high.
The last store that I have looked at was Primark, this is a low cost fashion retailer. Primark are a lot different from the other two stores as they have a larger target market, as they have products for all ages both men and women. They also target people who have a low income but still want to keep with fashion. Within the store they sell budgeted products so they are not well known brands and normally have low quality so they can sell it at lower prices. Primark merchandise differently in the different sections of the store but it is always compacted onto the shelves and they put as many products out as possible because they have to sell a lot more than other stores to break even. In the window displays they mostly have pictures to display their products this is because they cannot afford to put their products on display like other high end retail stores.
Distribution channels in retail
There are three different ways that the products can take to get from the manufactures to the consumer. The way this happens is decide by the manufacture when the company is first started and they normally decide on what is best and easiest way to sell their product on.
The first channel that a manufacture can use is to sell it directly to the consumer. Many businesses start off selling straight to the consumer as it is easier due to the internet. For example many small businesses sell their product through popular online sites such as eBay or Amazon. This way of selling the product produces the biggest profit for the manufacture.
The next channel for the manufacture is to sell it through a retailer. This is where the manufacture sells its products to retailers in bulk for a wholesale price and then the retailer will sell it on to the consumer. The problem with this method is that the manufacture has no control over any pricing or promotion with the product. This is normally used if the manufacture sells the product to a small number of retailers or chain stores.
The last channel for the manufacture is to sell it through the wholesaler. This is where you sell it in bulk at a lower price than you would to the retailers, as the wholesaler will sell it on in bulk to different retailers which will then be sold on to the consumer. This means that the price per product will be very low when it gets sold to the wholesaler because both the wholesaler and the retail store need to make a profit for when they sell it on. Companies that sell through the wholesalers are the companies that have their products in thousands of different stores.
This is an image of the different distribution channels:
Customer service within Primark
The customer service desks within Primark stores tend to only be the tills where you go to pay. Example below;
The role of the customer service desk is to help customers with any problems that they have or where the customer can purchase some products. For example in Primark the customer service desk is the tills within the store, this is where you can make returns or exchanges.
The desk is not the only place to get customer service within the store they have staff that walk around the shop floor to answer any questions or give advice.
Primark tend to have more staff in the store depending on the time of year and their busiest times.
References
Barbara Farfan. (). Retail Definition. Available: http://retailindustry.about.com/od/glossary/g/retailterminolo.htm. Last accessed 25 october 2013.
The Guardian. (12/09/2013). UK online grocery sales forecast to double amid shakeup of retail market. Available: http://www.theguardian.com/business/2013/sep/12/uk-online-grocery-sales-forecast-to-double-retail-shakeup. Last accessed 31st Oct 2013.
World of Work . (November 2010 ). The job Market . Available: http://www.wowbc.co.uk/showcontent.php?id=153. Last accessed 31st Oct 2013.
Ellis-Chadwick. (2012). Internet retailing: the past, the present and the future. Available: http://oro.open.ac.uk/24815/2/. Last accessed 31st Oct 2013.
IMIS. (2013). Customer Service Policy Statement. Available: http://www.imis.org.uk/customer_service_policy. Last accessed 31st Oct 2013.
Karen Collins. (2009). Distribution Channels. Available: http://www.web-books.com/eLibrary/NC/B0/B66/074MB66.html. Last accessed 7th Nov
2013.