The low prices are one of Primark's major attractions, and they are the reason that queues of people who want low-cost fashion build up at its stores every day. However, due to the global scenario the company may be forced to review its policy, as George Weston, CEO of Associated British Foods, admitted yesterday. During the presentation of the latest financial results, the textile firm issued a warning: “Inflationary pressures are such that we cannot offset them all by cost-savings, so Primark will implement selective price increases in some of its autumn and winter stocks,” they said.
The Irish chain posted an adjusted operational profit 491 million euros in the first six months of its fiscal year (from October to March), which was nearly ten times as much as the same period of the previous year and 29% higher than its 381-million-euro profit in the last full year. Primark’s sales were also up by 58.6%, to 4.2 billion euros.
Primark also went online in the UK with a new website earlier this month, having resisted this trend in recent years, and is now considering extending its website to other markets in the autumn. The only way to acquire its products at present is to go to one of its stores – there is one in Malaga city and another in Marbella. When the online shop goes live, customers will be able to order what they want to buy but will still have to go to a store to pick it up.
The firm is also continuing with its plans to increase its number of stores by 530 in the next five years, not only in growing markets such as the USA, France, Italy and Spain but also in Rumania and Slovakia this fiscal year, which will mean the firm has a presence in 16 different countries.