Associated British Foods, the parent company of Primark, announced in late February that it expects profits will be “well ahead” of last year despite a drop in underlying sales in its stores. The company also managed to perform well in 2018, despite the retail environment being particularly tough, with revenues reaching £7.4bn ($9.8bn), 6% ahead of last year at constant currency rates.
Primark believes future growth prospects lies in further expanding its store portfolio and has ambitious plans to open more stores in the coming year, including 19 across, France, Germany and the UK, one new store in Florida and its first store in Slovenia.
Primark licensed ranges experienced exponential growth in 2018 which has made Primark a powerful force in bringing big brands to high-street. The company sells a huge range of licensed products which include global entertainment brands such as Warner Bros, Disney and Marvel to popular television series such as Love Island and Game of Thrones, in addition to a variety of music and gaming brands.
In spite of a decline in high-street footfall and a shift to online retail, Primark has managed to keep customers rushing through its doors, something which other struggling fashion retailers such as New Look have failed to do in recent years. Alongside the major selling points of Primark – value and on-trend fashion – a focus on creating a memorable in-store experience has also been at the forefront of its growth strategy.
Although Primark has refrained from establishing an e-commerce site where customers can order products have them delivered to their doorstep, the company has utilized digital engagement and social media to attract customers to its brick and mortar stores.