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A MOVE BY PRIMARK into click-and-collect services could drive “incremental” benefits but bricks and mortar retail is still the company’s “cornerstone”, according to Davy.
Earlier this month, Paul Marchant, the chief executive of Primark, reportedly told analysts that the retailer was looking into click-and-collect – where goods ordered online are collected in-store.
The fashion retailer, which is owned by Associated British Foods, has been fending off speculation about an online offering for years and has been slow to move into online retail.
In a research briefing, Davy said while click-and-collect was “on the horizon”, driving footfall and boosting sales “will remain the cornerstone of strategic decision-making”.
It added that “even when rolled out, a click-and-collect offering will only drive an incremental benefit for Primark” due to lower margins, relatively small volumes and only selected stores and ranges making it available.
“Of the top-20 retailers, which hold 70% of the UK market, Primark is the only one with no online presence, yet it has achieved the largest market share gains over the last decade,” Davy said.
While this is encouraging for the brand, management has said that some form of e-commerce would be on the agenda in the coming years, Davy added.
Birmingham megastore
Primark opened its biggest ever store in Birmingham this month. The new branch is four times bigger than its predecessor around the corner. It includes three café outlets, including one Disney-themed café, a barber shop and a beauty salon.
These in-store concepts will “enhance the customer experience, driving footfall, extending dwelling time and increasing sales densities,” said the Davy report.
Refurbishments, refittings and extensions are the way of the future for the Primark brand, according to Davy. In 2019, the retailer is planning to open 14 new stores.
“We can expect to see further in-store services in selected refurbishments and new stores in the coming years,” Davy said.
Written by Zuzia Whelan and posted on Fora.ie
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Davy sounds like a smart guy!
@David W: exactly, who is Davy?
I read the first paragraph expecting to find out whether this was a person’s first name or surname, and what brought him to a new barbershop in Birmingham. I’m guessing they’re quoting Davy’s, the stockbroker company?
Penneys Hun
@kokonutter: What the hell has Provo gutter talk got to do with Penny’s
Does anyone know why it’s called Penny’s here and Primark all over the world?
@James O’Donovan: why is McDonald’s called MuckDonalds in the UK?
@James O’Donovan: From what I can understand it’s a bit like the Bulmers/Magners thing. Penneys was the original name, but I assume they can’t trade abroad with that name as JC Penney have the rights to it so Primark (the name of the limited company) is what it trades as instead.
@kokonutter: Oh stop, it’s even worse when people spell it “macdonalds”.
@Dan Skelton: ohh maaatttrroonnnn
@James O’Donovan:
Trademark issues.
They have Penneys name in Ireland but not in rest of the word,
simple as that
@James O’Donovan: does anyone know why some stupid people call it “Pennys” and not “Penneys”
Penney’s Guuuuuuuuurrl
I think click and collect from penny’s will be a great idea. I find when u go into the store you can never find what you are looking for and when you do the items never look the same when you see them all crushed together on a rail.
This will either fail or make them break even the cost of returning product is now whats eating into profits of e-commerce which most had enjoyed free returns debenhams is one example and the rest will follow suit.
have your say