2013-01-09 21:39:32 - Primark - Verdict Company Briefing - a new company profile report on companiesandmarkets.com

Primark continues to deliver a very strong trading performance as it expands through new stores, while its improved fashionability, faster turnaround of trends and value credentials are particularly attractive for consumers in a challenging economic environment of lower discretionary spending. This Verdict company briefing includes estimated sales data and market shares for clothing and footwear.

Report Scope

- Consider your own international expansion strategy by building awareness of Primark´s international plans and opportunities for new market entries.
- Justify and inform development of new store concepts and routes to market by uncovering Primark´s activity in this area.
- Benchmark Primark´s performance in clothing by using Verdict´s proprietary sales data for womenswear, menswear, childrenswear and accessories.

Key Highlights

Primark delivered

 

 

a very strong trading performance in 2011/12 as it continues to roll out stores across Europe, while its value credentials are particularly attractive for consumers in a challenging economic environment of lower discretionary spending.

While operating profit grew by 15.2% in 2011/12, operating margin stayed level at 10.2% due to higher cotton prices in H1, with the retailer forfeiting higher margins to ensure its prices remained competitive and continued to appeal to its customer base.

In contrast to the majority of UK clothing retailers, Primark has seen its clothing density increase since 2009, as sales continue to outpace space expansion. Primark benefited from the recession, as its competitive prices attracted shoppers who were trading down and its focus on offering customers good value should continue to appeal in 2013.

Reasons to Buy

- How have Primark´s clothing sales and densities developed and how does Verdict see this changing? How does it allocate its space between categories?
- What is Primark´s share of the womenswear, menswear, childrenswear, accessories, footwear and value clothing markets?
- Which customer segments visit Primark for clothing & footwear? What challenges does it face from its core customer base of 16-24 year olds?
- What does Primark need to consider before launching a transactional offer? What challenges does it face and how do these differ to its competitors?

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