Primark expands click and collect service as profits rise
Source:Mintel23-04-2024
UK 23-04-2024
For the 24 weeks to 2 March 2024, Primark’s adjusted operating profit jumped 46% to £508 million with margin recovery up to 11.3%. Its revenues were up 7.5% to £4.5 billion, which Primark said reflected “continued growth in selling spaces.” While its like-for-like sales were up 2.1% were driven by “good performance across most markets due to pricing and well-received product ranges.”
Primark owner Associated British Foods expects the retailer to “continue to perform well in the second half driven by our store expansion programme and the modest levels of like-for-like growth, as we focus on driving volumes.” Primark is continuing to roll out its click and collect service across all UK stores by the end of 2025.
Mintel comment:
“While Primark has been one of the beneficiaries of the cost of living crisis, with its formula of low-priced essentials and trends, it has not been immune to the more volatile retail climate and increased competition from newer fast fashion value focused players such as Shein and Temu. Key to Primark’s success has been its young female customer base, however research for Mintel’sHolidaywear – UK 2023found that 64% of Generation Z consumers had switched to cheaper retailers in the last 12 months. We previously highlighted that it shouldn’t ignore the threat posed by these ultra-low priced e-tailers and that its introduction of click-and-collect for womenswear in September 2023 was a step in the right direction. While Primark has shied away from launching a fully transactional online site, its decision to expand click-and-collect to menswear and to all its stores by the end of 2025 will enable it to continue to grow and remain competitive, as consumers opt to shop with retailers that offer them a seamless omnichannel shopping experience.”
