Primark’s Brick-and-Mortar Push Defies Expectations in U.K.

U.K. clothing chain has bucked expectations with a retail strategy that sticks to high street instead of online.

License Global

September 10, 2019

1 Min Read

U.K. clothing chain Primark to add to brick-and-mortar strategy with new stores openings in the face of the growing e-commerce market.

Primark announced it will open new stores U.S. and Europe this year, according to Bloomberg. It also has plans to add a further one million square feet of selling space to its flagship concept store in Birmingham, England, next year. The Associated British Foods company’s moves add to the chain’s continued focus on high street.

Primark doesn’t sell online and has continued to put resources into brick-and-mortar retail.

“We are the people investing in the high street and in the U.K. that distinguishes Primark from our competitors,” says John Bason, finance director, AB Foods in an interview with Bloomberg.

The company’s decision to avoid online retail comes in spite of e-commerce’s growing importance in the U.K. According to a report from E-Commerce News Europe, e-commerce in the U.K. will account for 53 percent of the country’s total retail sales by 2028.

The move to stick to high street may be paying off for Primark, however. Bason told Bloomberg that he expects sales to be four percent ahead of last year in constant-currency terms, though it predicts a two percent decline on a comparable basis. According to Bason, the decline may be attributed to a weakened pound as Primark mostly sells in pounds and euros but buys garments in dollars.

On the licensing front, Primark has also found success with partnerships for brands including NASA and “Rick and Morty.”

Read more about:


About the Author(s)

License Global

License Global is the leading news source for the brand licensing industry, delivering award-winning editorial content including news, trends, analysis, and special reports about the global consumer product and retail marketplace.

Through its print edition, website, daily e-newsletter and event publications, License Global reaches more than 150,000 executives and professionals in all major markets. The magazine also serves as the official publication for the sector’s trade events, which include Licensing Expo, Brand Licensing Europe, Licensing Expo Japan, Licensing Expo Shanghai and the Licensing Leadership Summit.

Subscribe for updates directly into your inbox.




Subscribe and receive the latest news from the industry Article
Join 62,000+ members. Yes, it's completely free.

You May Also Like