As Britain’s second-largest apparel retailer, Primark is ready to catch up with Next

0
282

With strong winter sales, Primark will become Britain’s second largest apparel retailer this year, surpassing Next.

Low prices, aviator jackets, kidswear and a new make-up series helped Primark outperform its rivals, though it is not sold online, which is the fastest-growing source of sales in the field.

Analysts estimate Primark stores sales in the UK have risen 4% for the 16 weeks to January 6.
Clothing chain said that because the price remained stable, so benefit. Since the Brexit vote, prices of many rivals have risen because of a drop in sterling value.

GlobalData Retail analyst Kate Ormrod said Primark’s strong UK target for 2017, after reaching 10% of the country’s total economic growth in the previous fiscal year, means that Primark may outperform Next.

Primark holds a 6.9% share of the apparel market, with the next accounting for 7.1%. Marks & Spencer remains the largest apparel retailer in the United Kingdom with a 8.1% share.

Ormrod said: “The apparel industry is polarized because mid-market rivals like Next, M & S and Debenhams lose to premium and value competitors, while Primark excels at taking advantage of shopper deals.
All three chains are closing stores, while Primark continues to expand. Growth for the next Christmas is online, with sales up 13.6% and its high street store down 6.1%.

In contrast, Primark plans to open 1.2 million square feet of space internationally this year. In Britain, it opened a store in Charlton in southern London and opened a bigger store in Rotherham in November.

The rise of the price-tagged apparel chain reflects the changes that have taken place in the grocery market, where traditional supermarkets are losing out to discount stores Aldi and Liddell.

John Bason, chief parent company of Primark and CFO of the British Food Company (IBF), said while many competitors reported tough Christmas days, especially on High Street, the number of visitors to its stores in the UK is on the rise.

He said: “This is about the product and the price we already have.” The work is inflation-free. ”

Primark performed significantly better in the UK than in the rest of Europe, with analysts reporting sales in mature stores down 6%.

The group’s total sales rose 7% as it added 8% of the room, meaning that total sales fell 1% throughout the store during this period.

ABF shares dropped 3.6% on Thursday as analysts’ performance against other European countries and the group’s sugar business declined 12% as the price of the commodity dropped.

The decline in most parts of Africa is due in part to unusually warm weather in many countries in October. Sales of Primark’s existing stores, especially the Netherlands, also declined, as retailers have opened more stores.

Primark’s strong performance has dampened the UK trend because it does not sell goods online and therefore missed the transfer to families.

According to the monthly sales figures of the British Retail Federation and KPMG, the total retail sales of non-food items decreased by 1.4% in the three months to December 30, the lowest level since March 2009. On-line sales of non-food items increased by 6.2% over the same period of last year.

According to Bason, Primark’s website and social media activities play a key role in attracting customers to the store.

The company has 11 million followers, nearly half of whom are Instagram users. Primark’s social media has rapidly skyrocketed as more and more young people navigate the internet with their mobile phones before they enter the store.

LEAVE A REPLY

Please enter your comment!
Please enter your name here