ENTERING THE

CANADIAN MARKET
(FROM THE UK)

(Primark, n.d.)
CONTENTS

Company History

Target Market

Requirements

Regulations

Things to consider

Benefits

Conclusion
COMPANY HISTORY

Primark, (formerly Pennys) was a fast-fashion

retailer founded in Dublin, Ireland by Arthur Ryan
in 1969.
It had to rebrand its name to Primark as it
clashed with the American retailer JC Penny.
Over the span of 15 years, it expanded its stores
to Spain, Netherlands, Portugal, Belgium,
Germany and Austria.
Today it has 400 stores worldwide, and is one
Britain’s most successful retail businesses with
(Primark Derby 1973 on Babington Lane, n.d.)
191 stores just in the UK (Mellor, 2022).
TARGET MARKET

Target Market: Ontario

1. Age Focus
Ontario’s population age distribution currently swells and will
continue to grow between the 20 to 40 range, most of whom are
college students and middle aged workers. (Ontario Demographic
Quarterly: Highlights of First Quarter, 2023)
This aligns well with Primark’s older GenZ and younger Millennial
fashion trends which mainly target ages 18 to 30.
2. Pricing
Primark retail prices average around a reasonable $6 an item (Long,
2015).
This will prove an attractive pricing for the large population of
international students and new employees in Ontario.
3. Lifestyle
In large urban cities like Toronto casual and business casual wear,
mainly hoodies, T-shirts, collared short-sleeves and jumpers would
(Age Pyramid of Ontario’s Population, 2022 and 2046, n.d.) be most popular among the teenage and middle age population.
This coordinates well with Primark’s products as the brand
specializes primarily in the stated sectors.
REQUIREMENTS
Register
If Primark is to be entering Ontario
specifically, it must be registered under the
Ontario Ministry of Government and
Consumer Services.
Information such as business name, trade
name, or corporation must be filled in a form.
This is for a number of reasons:
To protect the business name and avoid
confusion with other businesses
To access government services and
benefits
To comply with the law and avoid
penalties or fines
This can be done online at Ontario Business
Registry.
Licenses and permits
Next, licenses and permits must be
obtained from the government to operate
within the nation.
These may include:
Municipal business license
This will ensure that your business
complies with the zoning and
building requirements of the
municipality.
Federal and provincial permits
If the business involves working with
hazardous materials, affecting the
environment, or operating in
regulated industries, federal and
provincial permits may be necessary
The necessary licenses and permits can be
checked using BizPal
Intellectual property
protection
For a business relying on unique products
and designs, it may be necessary to attain
intellectual property protection.
These may include:
Patents
These protect new and useful
inventions, such as products,
processes, or machines
Trademarks
protect words, symbols, designs, or
combinations of these that identify
the source or quality of goods or
services
Copyrights
protect original works of authorship,
such as books, music, art, software,
or websites.
REGULATIONS
Employee Protection
The general minimum wage is CAD 14.35 per
hour and the student minimum wage is CAD
13.50 per hour.
Other employee related regulations include:
Prohibition of discrimination
In a highly diverse country such as Canada,
employers are legally obligated to treat all
employees fairly and equally, regardless of
protected characteristics, to avoid legal
consequences such as lawsuits and fines.
Workplace Health and Safety
Regulations require employers to provide a safe
working environment, conduct risk
assessments, and implement safety measures,
with non-compliance leading to accidents,
injuries, legal liabilities, and reputational
damage.
Tax Obligations
Businesses operating within Ontario must
register with the government for a GST / HST
account.
Taxations must be collected on taxable
sales. If the business has a gross income of
CAD 30,000 or higher, it is required to charge
GST/HST.
Additionally, all incomes must be reported
and contribute to the Canada Pension Plan
annually.
This is is a government-run social insurance
program in Canada designed to provide income
support to Canadian residents in retirement,
disability, and survivorship situations.
Fabric regulations
Textile Flammability Regulations: These regulation
sets the flammability standards for textile products
that are intended to be worn or used by consumers.
They are crucial for ensuring that textile items, such as
clothing and bedding, do not pose unnecessary fire
hazards, thus protecting consumers from potential
fire-related injuries.
Textile Labeling Act (TLA): all articles must have a
label that indicates fibre content, country of origin, etc
in both English and French. This is essential for
consumer protection and transparency, allowing
customers to make informed choices about the
products they purchase while promoting fair trade
practices.
Children’s Sleepwear Regulation: products must meet
specific design and criteria to reduce the risk of fire-
related injuries for children. Their importance lies in
safeguarding the safety of young consumers by
ensuring that sleepwear items minimize the risk of
accidents and injuries.
THINGS TO CONSIDER
Hoodies Sweaters

Climate adaptations
In Ontario, temperatures average far below 0°C and
tend to drop below -30°C (Campbell, 2021).
Compared to the mild 2-3°C climate in the UK, Canada’s
extreme weather conditions may require warmer winter-
wear.
Therefore, it would be advantageous to stock and Scarfs Gloves

market more unique and practical articles to the winter-

wear collection for Primark.
Items with potential for popularity may include:

(Primark, n.d.)
THINGS TO CONSIDER
Locally accessible modes of transport include:
Airfreight Railway

Air freight is the fastest mode of

transport, suitable for perishable
goods or products requiring Canada's extensive rail network
expedited delivery. gives and safe access to
However, it can be very costly as provinces and territories
nationwide.
Shipping and transportation Costs can range from $1.50 to
$4.00 or more per kilogram It is also the cheapest option at
(Transport Canada, 2023). approximately $0.03 to $0.15 per
Canada has a land mass of 9.985 million km², making it the
ton-mile (Transport Canada,
second largest country in terms of landmass (Geography, 2011). 2023).
When receiving orders from provinces further away from the However, it is limited by its need
warehouses, mode of transport and fees must be considered, to Trucking for railroads and travel time.
avoid inefficiencies during long-distance deliveries.
This may be the most convenient in terms of
reach as it isn’t bound by railroads or airports.
It is also priced reasonably at $1.25 to $2.50
per kilometer (Transport Canada, 2023).
However, this becomes the slowest out of all
options.
THINGS TO CONSIDER

Location
As Ontario is the second largest Canadian province with an area of 1.076 million
km², strategically choosing a place for stores is crucial.
It would prove beneficial to pick somewhere within a densely populated area
where items will be openly visible, such as the CF Toronto Eaton Centre.
The following factors should be considered:

Foot traffic and Accessibility Competition

visibility
For retail businesses, restaurants,
and other customer-facing
establishments, high foot traffic
and visibility are crucial.
Being in a busy area can attract
more potential customers.
It is necessary to evaluate the
accessibility of the location for both
customers and employees.
Such as adequate parking facilities
which can significantly enhance
customer convenience.
It is necessary to analyze the level
of competition in the area.
High competition may indicate a
thriving market, but it can also
make it challenging to stand out.
It is necessary to consider whether
the business can be differentiated
effectively.
BENEFITS OF CHOOSING CANADA
Trade agreements
Canada has several trade agreements,
including the United States-Mexico-
Canada Agreement (USMCA), that can
facilitate international trade and exports.
This makes expanding into these countries
easier and more affordable .
Access to Skilled Labor
Canada has a well-educated and diverse
workforce, which can be beneficial for hiring
skilled employees in areas such as design,
marketing, and logistics.
Multicultural Society
Canada is a multicultural society,
which can be advantageous for
businesses selling clothing because it
allows you to cater to a wide range of
tastes and preferences.
Large Consumer Market
Canada has a significant population,
providing a substantial customer base for
your clothing products.
Additionally, its proximity to the United
States can be advantageous for cross-
border trade.
CONCLUSION

Primark's successful evolution from Pennys in Ireland to a UK retail powerhouse

highlights its adaptability in the fast-fashion industry.
Ontario, Canada, presents an enticing growth opportunity due to its expanding,
youthful population that aligns with Primark's target demographic.
The province's diverse and growing consumer base, including international
students and newcomers, makes Primark's affordable pricing strategy a strong fit.
Canada's strong economy, multicultural society, and advantageous trade
agreements create a supportive environment for Primark's expansion.
Proximity to the United States further facilitates cross-border trade and logistics
for Primark.

Therefore, as Primark embarks on this new venture in Ontario, it will no doubt see
success due to the points stated above.

However, challenges such as: adapting to complying with regulatory requirements,

adapting to the climate and lifestyle in Canada, calculating transportation costs
and dealing with competition must be overcome first.
Once it has settled in, Primark can expect a future of expanding its market size,
establishing more stores worldwide and improving its brand image.
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https://edvoy.com/articles/most-popular-cities-in-canada-for-international-students/
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