Primark, the reputed fashion retailer, has, reportedly, reaffirmed that it will not increase its product prices – amidst growing inflation.
ABF, which owns Primark, has said that Primark sales for the 24 weeks to 5 March are expected to be well above 60 per cent from the previous year. Not surprising, considering its stores were able to trade for the majority of the said period.
Corroborating on the same, John Bason, CFO, ABF, said that despite the inflation remaining at a 30-year high, the retailer doesn’t have any plans to increase the product prices.
John added “We have seen cost increases in commodities including cotton, sea freight and energy [costs when running] our stores.”
He said the company has let the number of in-store staff reduce by not replacing the staff that decided to leave, which has, consequently, reduced the operating costs.
Also, the retailer buys a lot of clothing in US dollars and then converts them into sterling, which helps owing to the favourable exchange rate.
Notably, as sales increase at Primark the value retail chain will be able to use this to help offset any inflationary pressures.
John also said that with offices reopening, formalwear sales have become very strong. Besides, with many people also planning holidays, there is increase in sales of swimwear and beachwear as well.
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Primark generated £7.79 billion in 2019, and is known for kidswear, womenswear, menswear, homeware and footwear, amongst others.
