By Matthew Roscoe • 18 January 2021 • 16:32
CREDIT: "Primark, Manchester" by Gene Hunt is licensed under CC BY 2.0
PRIMARK is Happy With its Current Business Model and Rules Out entering into E-Commerce
Despite the restrictions on mobility and the closure of stores due to the confinement, many would have thought retail giants Primark would make the move to online sales, however, the British company is weathering the Covid-19 crisis – just – and refuses to change its business approach.
Primark has a business model which involves building large stores in the most important streets of the country and in shopping centres. A path that has led them to great success with large queues always forming when a new establishment opens. In fact, the British giant is looking for a place in Madrid to face the largest Zara in the world, which is located in Madrid.
“The reason we don’t have home delivery is because we wouldn’t make money from it and no one else does either,” AB Foods (which owns Primark) CFO John Bason said in a telephone interview with Bloomberg.
“Are we losing sales here during these store closures? Yes, that is not in dispute here,” Bason added. “But that does not mean that it pushes you to make uneconomic decisions about changing a winning business model,” he says.
This determination led the British company to open some of its stores for 24 hours in December and to continue its search for premises to open new stores in Rome and Miami. It also opened a store in Paris in August which had large queues and was a great success.
Sadly, the latest restrictions which have been implemented across most of Europe throughout January could cost more than 1.4 billion pounds in lost sales.
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Originally from the UK, Matthew is based on the Costa Blanca and is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]
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