Growth Strategies 2016

Executive Summary
This report will observe and analyse the issue of sales growth in the current business
environment, in regards to the TCF industry and the brand Peter Alexander. Furthermore
it will determine a range of growth strategies that PA could implement, evaluating each
one. From this, the strongest strategy will be selected and justified.
Retailers are currently facing hard times in relation to external factors that are out of the
businesses control, with increasing competition, arrival of international brands in
Australia and the success of online shopping. The aging population rise, and rapid
growth of technology also must be confronted. Furthermore, the cultural shift toward
priority expenditure means that customers disposable income is moving away from
material goods and instead towards experiences. Political and legal shifts such as the
uncertain GST rate, slowdown in China, low Australian dollar, political instability and
unfair trade for Australian businesses in this global market are all factors that are
currently hindering retail growth. Lastly, todays cost of living, high levels of personal
debt and unemployment rate in Australia are having an effect on how much consumers
can afford to spend.
The main internal factors impacting the Peter Alexander brand specifically, have been
their past struggles expanding globally, leaving their growth limited to Australia and New
Zealand. Recent management changes could also hinder development.
Strategic thinking has then been used to explore possible solutions Peter Alexander
could implement to juxtapose retails issues with growth. These include: Integrating The
Just Group brands through the use of technology, increasing the importance of animal
welfare, building stores in the United Kingdom, and creating a category for PAs senior
customers.
Introducing a category for seniors has been identified as the best growth strategy for
Peter Alexander moving forward. It is a relatively easy task to implement, with a huge
opportunity to tap into this rapidly growing market and to gain a whole new brand of loyal
customers.