In a bold move, fashion powerhouse Primark has expanded its click and collect service across all 184 UK stores, introducing menswear and homewares. George Weston, Chief Executive of Primark’s parent company Associated British Foods (ABF), strongly believes in the effectiveness of click and collect, stating, ‘it works very well.’ Primark remains steadfast in its decision not to offer home deliveries, distancing itself from a business model it deems fundamentally different from its core retail operations.
While ABF faced pressure during the COVID-19 pandemic to embrace online shopping, the company remained resolute in its decision to prioritize physical stores. This strategy has paid off, with shoppers flocking back to Primark stores post-lockdown. Market share has grown, and the company has outperformed online fashion retailers ASOS and Boohoo, whose share prices have plummeted by 90%.
Primark’s unique approach also capitalizes on its existing store network. By requiring customers to pick up online orders in-store, the company avoids wasting investments in its physical locations. Weston revealed that 40-60% of online shoppers make additional purchases while picking up their orders, further boosting sales.
Despite economic headwinds such as cost pressures and rising prices, Primark has managed to grow sales by 6% to £4.5 billion and increase operating profits by 46% to £508 million. Weston has ruled out any further price increases for the foreseeable future.
In other news, JD Sports is set to acquire US-based rival Hibbett for £899 million, adding over 1,100 stores to its growing empire. This move reflects a shift in the trend of British companies being acquired by US rivals. The FTSE 100, London’s index of top 100 firms, reached a new mid-trading high, buoyed by easing tensions in the Middle East and speculation of a shock US rate rise.
