Primark’s sales growth in FY ’23, posted by owner Associated British Food this week, highlights strategic measures that propelled the clothing retailer’s success.
Like-for-like sales increased by 9 per cent, bringing in £ 9 billion. A thoughtful approach to pricing is reflected in the adjusted operating profit, which is somewhat lower at 735 million pounds with an 8.2 per cent margin.
With careful application of calculated price increases to specific ranges, Primark was able to effectively combat the rise in input costs. Strong demand for the company’s product offerings and the well-received new shop openings—which brought the total number of stores to over 430 from 408 the year before—also contributed to the favourable results.
By implementing price modifications strategically, the brand was able to protect profit margins and maintain its attraction to its core demographic of value seekers.
Primark is a leading retailer in the digital transformation space. It has lately extended its ‘click and collect’ approach to include clothing. This calculated action emphasises the lasting value of in-store encounters and is consistent with the brand’s goal of fusing digital expansion with its physical storefronts. Primark is unwavering in its belief that its physical stores will be the principal factor influencing future sales performance, even in the face of internet research.
