Penneys Swot Analysis

In this essay I wish to analyse the greatly loved Irish retailer Penneys, and its attractive expansion to the US soils. I will also discuss its likelihood of succeeding in the highly competitive market and how it could effect the already existing American retailers.

First of all, Penneys social and cultural characteristics are perfectly fitted for the US retail industry. Efficiency and low prices are the key aims and assumptions of Penneys, as those factors guarantee high demand for their products, resulting in satisfying profits for the management. The main reasons for its success in Ireland are its attractive prices that are affordable for masses, this would also be applicable for the US targeted audience as in the 2011 BCG, Consumer Sentiment Barometer declares that the American consumer spending trend has significantly decreased and that consumers begin ‘treasure hunting’(Boston Consulting Group (2011)) and shopping around for the best deals especially during the times of economic uncertainty. This portrays bright future for Penneys in the US, as

‘One of the Penneys strengths in Europe is its location’ ( Courtney Reagan (2015), the brand has used the same location approach in America as they have set up their stores in the North-East region where Irish and British culture and trends are highly admired and in fashion, this guarantees a high probability of demand for their products as the society already favours European style. Another advantage for Penneys is that their stock turns over six times a year unlike its competitors only two times a year. This strategy at first may appear costly and inefficient, however it evokes the customer to visit the store more frequently in search for new