In the third quarter of its broken financial year, Primark almost tripled its sales. The Irish cut-price fashion chain is therefore raising its profit forecast for the entire year.
All stores reopened
From 28 February to 19 June, Primark realised a turnover of 1.6 billion pounds (1.9 billion euros). That is almost a threefold increase compared to the same period last year, and (on a comparable basis) 3 per cent more than in 2019, when there was no pandemic.
Underlying the spectacular recovery is the easing of measures implemented during the quarter. At the start, only 22 per cent of stores were open, but that proportion quickly increased. All stores were operational again on 19 June.
Increased confidence
Primark noted a significant increase in “consumer confidence and willingness to spend”. The retailer attributes this to a resurgence in demand for womenswear and menswear. This demand comes at the expense of casual wear, which became very popular during the lockdown periods. Licensed products, such as the NBA line and gaming-related items, also did very well, as did the new baby collection.
Primark has raised its profit forecast for the entire year to reflect the better than expected results. This will now be in line with last year’s results, reports Retail Gazette. Until now, the retailer had forecast a slight decline in operating profit.
Digitisation
Primark also plans to launch a new website early next year. It will show a much broader range of products and should allow customers to see which items are available in which store.
