Primark bumps up profit 44 % | RetailDetail

Primark bumps up profit 44 %

Primark bumps up profit 44 %

Irish fashion chain Primark has increased its turnover by 22 % for its fiscal year 2012/2013 to 4.27 billion pounds (some 5 billion euro). Profits even increased 44 %, thanks to good summer sales.

Good summer helps excellent results

The surge was mainly because of new store openings, but on a like-for-like basis the increase was still 5 %: a remarkable achievement, as competitor Marks&Spencer had to accept a 1.5 % drop for the first 6 months, on a like-for-like basis.

 

It believes this drop was because of the discounts it had to give to pull in customers. Primark on the other hand has stated it did not use many discounts as particularly its summer sales were marvelous. That led to a 44 % profit increase to 514 million pounds (over 610 million euro).

 

Continue the current course

The biggest contribution to the increases sales numbers was from the bigger number of stores: Primark has opened 15 new stores, resulting in a total of 257 stores.  Its second Belgian store, in Ghent, came in September, while the chain is opening a sixth Dutch store on 19 November in Eindhoven. It expects to open new stores in Venlo, Enschede and Arnhem in 2014.

 

Using the British web shop Asos, Primark had joined the world of online sales, an experiment that was halted three months later. The fashion chain has stated it has no plans of creating a web shop itself.

 

 

(Translated by Gary Peeters)

 

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