Penneys to Primark

krsnaAH

I tried getting some information on how Penneys changed to Primark during its expansion to UK and other countries. And found that it is because avoid legal constraints with JC-Penneys.

But no information is available on how they made it easy and succeeded their expansion in many countries and markets without experiencing any issues like US and other EU countries...

Axwell

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31978D0193:EN:HTML

pedroeibar1

This topic has been mentioned before. See here in 2014

Penneys (subsidiary of ABF) had that name registered in Ireland but came under scrutiny when it expanded into the UK and was sued by JC Penney Inc. , who lost in Ireland and I think Scotland but won in England. That is why Penneys (Ireland) goods are branded Primark but have Penneys over the door in Ireland and Primark everywhere else.

And the success of Penneys in a discussion on Clery’s two years ago.

……back to the 1960’s. Clery’s biggest competitor was a very similar operation called Todd Burns. The latter failed and was bought by a young guy with help from daddy. He poached the best managers from Dunnes Stores and they changed profile / image and recruited young managers, gave them power and reward and drove them very very hard. That business became Penneys. That’s the difference.

As for the success of Pennrys / Primark, the leadership / management at its birth was exceptional. The MD, Arthur Ryan had an ability to spot, encourage and grow talent. He also surrounded himself at a senior level with very capable individuals who complemented his skills (and covered his weaknesses!). Lower down, the attrition rate at trainee management intake was very high, but if you could stay the course, worked 80 hour weeks, a day off a rarity and had talent, ambition and took responsibility you progressed quickly. For its expansion outside Ireland Penneys used its ABF links and ‘twinned’ with the ABF sister co, a supermarket named ‘FineFare’.The firm’s initial expansion was into England (Bristol, Cirencester) and Scotland (East Kilbride and Aberdeen). After that the stores continued to roll out. From about 1973 it had a buying office in the Far East to source lower cost items.

martyoo

I once met this lady who played a big role in developing Primark abroad. An incredible woman! Her schedule now in her 70's would put most young people to shame.

Breege O'Donoghue - Journal article

Penneys/Primark's Breege O'Donoghue - Indo article

krsnaAH

pedroeibar1 wrote: »

This topic has been mentioned before. See in 2014
And the success of Penneys in a on Clery’s two years ago.
As for the success of Pennrys / Primark, the leadership / management at its birth was exceptional. The MD, Arthur Ryan had an ability to spot, encourage and grow talent. He also surrounded himself at a senior level with very capable individuals who complemented his skills (and covered his weaknesses!). Lower down, the attrition rate at trainee management intake was very high, but if you could stay the course, worked 80 hour weeks, a day off a rarity and had talent, ambition and took responsibility you progressed quickly. For its expansion outside Ireland Penneys used its ABF links and ‘twinned’ with the ABF sister co, a supermarket named ‘FineFare’.The firm’s initial expansion was into England (Bristol, Cirencester) and Scotland (East Kilbride and Aberdeen). After that the stores continued to roll out. From about 1973 it had a buying office in the Far East to source lower cost items.

I am not sure how they made Primark / Penneys to grow in US and now in Amsterdam, without any challenges as as there is difference in fashion and culture if compared to Ireland.
They might have taken big loans to fulfill their financial needs as making a home firm international would take more efforts.

krsnaAH

Axwell wrote: »

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31978D0193:EN:HTML

Thanks this helped understanding, however as it was Opened by Arthur Ryan in Ireland how it became a subsidiary of AB Food UK

pedroeibar1

krsnaAH wrote: »

I am not sure how they made Primark / Penneys to grow in US and now in Amsterdam, without any challenges as as there is difference in fashion and culture if compared to Ireland.
They might have taken big loans to fulfill their financial needs as making a home firm international would take more efforts.

Penneys have about a half dozen US stores - after their first in Boston they expanded on the East Coast in areas that are either 'Irish' or have huge footfall e.g. King of Prussia Mall. They already have several stores in the EU - in Austria, Belgium, France, Germany, Italy, Netherlands, Spain & Portugal to name just a few.

Of course there are / will be challenges. Look at the Lidl / Aldi retailing model - a decade ago most Irish people said they were too 'German' and never would work in Ireland. Do you know what their combined market share in Ireland is today? Zara is Spanish, H & M is Swedish, M & S, Debenhams, etc all are British, etc., etc. The internet/online shopping is here.......
Funding is not an issue for Penneys/Primark - research the Weston family.

pedroeibar1

krsnaAH wrote: »

Thanks this helped understanding, however as it was Opened by Arthur Ryan in Ireland how it became a subsidiary of AB Food UK

Arthur Ryan was the MD, the owner/promoter was Galen Weston whose family controlled ABF among many other operations.

Is this a homework project?

krsnaAH

pedroeibar1 wrote: »

Arthur Ryan was the MD, the owner/promoter was Galen Weston whose family controlled ABF among many other operations.

Is this a homework project?

No as per my knowledge Primark was an UK company but someone told me that its Irish and started in UK later. So I was curious about it and have checked their about us page which is not upto date for primarkIE but upto date for PrimarkUS and I have an interest in Business so it is wonder for me like "how do they do it" and why can't others?

Like Tata Moters have acquired Jaguar story was again worth reading...
https://www.tatamotors.com/press/tata-motors-completes-acquisition-of-jaguar-land-rover/

But yes I might think of this sometime to become part of future project

Meanwhile JC Penny itself - not doing so good.

http://abc13.com/careers/jcpenney-cuts-360-jobs-and-shares-plunge-/3173525/