Irish fashion chain Primark’s turnover grew nearly 20 % in the past fiscal year, largely thanks to expansion. Primark opened an astonishing thirty new stores in nine different countries.
Minor like-for-like growth
The company’s store space grew 140,000 sqm thanks to the store openings and it helped generate a 7.05 billion pound (8 billion euro) turnover, up 19 % compared to the year before. Excluding exchange rate fluctuations, turnover grew 12 %, but there was only a 1 % like-for-like turnover growth. Operational profit did grow 7 % to 735 million pounds (830 million euro).
Primark is one of the few retailers reaping the benefits from the Brexit and the weak British economy. Many consumers keep a close eye on their expenses and have turned their gaze towards discounters, including Primark. Its UK like-for-like turnover grew 10 % and 16 % in the rest of Europe (at level exchange rates). Primark did not divulge any American results, but does indicate it is still remodeling its stores to increase their profitability. Three of its current stores will be downsized soon for instance.
Primark’s expansion has not yet come to an end, because it intends to open at least nineteen more stores in the next fiscal year, mainly in Germany, France and the United Kingdom.