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Strengths And Weaknesses Of Primark

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Penneys/Primark is currently standing in a very precarious situation, its strength and resilience has been proven over 50 long years of trading and its roots are deeply embedded in European fashion. This being said however it has just ventured into the American fashion market, a turbulent industry for even the most experienced of companies. The next five years will be of integral importance to the business and the overall market development in the US will play a fundamental role in how Primark continues as a corporate entity attempting to establish itself in a competitive industry.

In a recent interview with the Guardian newspaper John Bason, financial director of Primarks parent company ABF talked about their plans for success in the US market. “There will be some things that are right and some things that are wrong,” he said. “It could be a sluggish start. The awareness of Primark [in the US] is well, well below what it is in Europe.” However, even if Bason chooses to downplay expectations, he believes
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The economy will stabilise soon and there is certainly niches that can be exploited if a company such as Primark were to cross the Atlantic and tackle the US market. Primark will have learnt from how its European predecessors fell due to overconfidence and hubris and will be determined not to make the same mistakes. “The main point about Primark is its price positioning. It is not going in as just another young fashion brand. It is going in as a young fashion brand with a very defined price edge on competitors that sets it apart. But it has all the trappings of the big stores and the feel of a more expensive fashion brand. I am sure that the likes of [US rival] Forever 21 are a bit worried." – (Maureen Hinton retail analyst at Columbine)
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