Primark set for annual sales of £10billion as Rita Ora A-lister deals pay off
Budget fashion giant Primark is on track to notch-up annual sales of £10billion after the success of celebrity tie-ups with the likes of Rita Ora.
The high street heavyweight is set to reach the milestone in 2025, if not sooner, the way things are going. Primark’s remarkable run comes despite not offering online deliveries, unlike rivals.
Founded in Ireland in 1969 under the Penneys brand, Primark now has 432 stores in 16 countries. Results out on Tuesday showed global sales jumped 15% to £9billion in the year to mid-September.
Among the hits were collaborations with singer Rita Ora - where sales of her first collection “surpassed expectations” - and TV presenter Stacey Solomon.
George Weston, chief executive of Primark-owner Associated British Foods, said of hitting the £10billion mark: “We will definitely get there. It will probably be 2025”. Asked about Primark’s secret, he said: “The quality of the ranges and the ranges always having newness. What other retailers don’t have is that newness at fantastic prices.”
'I swapped my make-up bag for Primark products and was blown away by the dupes'
Primark increased prices by about 8% this year but by less than its costs went up, leading to a dip in profits. But with cost pressures easing, prices are only set to rise by around 2% in the first half its financial year, then nothing after that.
Primark - whose average price is £5 - is Britain’s biggest clothing retailer by volume.
Mr Weston said shops were key: “We have lovely stores. We have the best collection of stores on the UK high street,” adding that was constantly investing in them.
Coach firms even market special tours to Primark’s Birmingham store, its biggest. While Primark has held off offering online deliveries, it is rolling out a click and collection option and stocking checking facility.
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