Dinavahi Srinivasa Ranganadh’s Post

Primark is moving on up like George and Weezy! The retailer, a favorite of my wife & kids, is simply rolling! 🛍 Primark's expansion in the U.S. reflects its commitment to exploring diverse opportunities in retail. With a focus on locations with significant foot traffic and entertainment options, Primark aims to establish a unique presence in the market. Despite facing competition from established retailers, Primark distinguishes itself with its clear pricing structure and focus on delivering quality fashion at affordable prices. The company's growth strategy involves strategic site selection and meticulous attention to the in-store experience. While Primark remains cautious in its expansion, it is actively pursuing new opportunities and adapting its approach based on market dynamics and consumer preferences. Primark's success in the U.S. hinges on its ability to communicate its brand identity effectively and build strong customer relationships. Through creative marketing initiatives and collaborations, Primark aims to enhance brand awareness and attract a diverse customer base. In the current retail landscape, characterized by economic uncertainty and evolving consumer behavior, Primark remains committed to meeting the needs of value-conscious shoppers. By offering a wide range of products, including licensed merchandise and everyday basics, Primark aims to cater to the preferences of its customers while maintaining its commitment to affordability and quality. 🎤 In a sit down interview with David Moin of WWD, Kevin Tulip, the chain's President of U.S. stores, dishes on their growth and future. Read the full feature here - https://lnkd.in/eFmD2Wka *** #Primark #Retail #Clothing #Stores #Growth #Business #Interview #WWD

Interesting retail news from The Sunday Times about Primark's ambitious expansion plans! Known as Penny's in Ireland, this beloved fashion brand is set to open 100 new stores over the next two years, Primark growing beyond its current 432 locations in 16 countries. With a remarkable £19.8 billion in sales and £735 million in profits, Primark stands out for not selling online, focusing on low-price essentials like €10 dresses and €5 T-shirts. Their strategy contrasts sharply with online fast-fashion giants like Temu and Shein. I was amazed at Temu's massive investment in Super Bowl ads - $7 million per 30-second spot - they bought 7 ads 👌 Primark's move to expand in the US is a bold step in the evolving retail scene with established discount retailers. like Walmart TK Max across the US #retail#fashion#ecommerce

Do you shop with huge but trusted retailers or opt for independent business? Primark's £100m investment in UK stores for 2024 underscores its massive growth, yet it also highlights challenges for independent brands. While Primark dominates with its scale, smaller brands possess a unique edge: sustainability and personalised experiences.🤝 Today's consumers crave authenticity and connection, making room for smaller players to shine. Economic consciousness further amplifies this trend. Small brands can leverage storytelling and direct interaction to stand out in a crowded market of retail giants. Your size doesn't limit your impact—embrace it and engage with your audience on a personal level.🔐 You can read the full article here: https://bit.ly/3P8YgUq 💥 If you want to take advantage of being a small business and find out how customer centric you are and ways to improve further, click the link and do my free, 5 minute quiz. https://bit.ly/3Pa2T0E #SmallBrandBigImpact #Sustainability #CustomerConnection

The resurgence of in-store retail is unmistakable. Having spent some days in London, it genuinely felt like post-COVID times. As we all return to the shops, it becomes increasingly evident that those investing in the customer journey and experience will prosper the most in times of economic uncertainty, particularly with customer loyalty at an all-time low. Two standout performers in recent times are Primark and the Frasers Group. My commendation goes to both organizations. Gone are the days of disorganized stock; the shopping experience is now truly remarkable. Whether it's the thoughtful addition of football dugout seats for trying on new boots or Sportsdirect.com strategic inclusion of other brands for maximum exposure and revenue, the transformation is noteworthy. Primark, in particular, deserves applause for its strategic collaborations, not only with trending themes like Stranger Things but also with well-known brands such as Greggs. This partnership now extends to over 60 stores. Additionally, Primark has diversified its offerings, now boasting a stellar home section and beauty treatments. According to a recent study by Deloitte, a staggering 66 percent of people would be driven away from a brand due to inconsistent store experiences. Therefore, an investment in the store, encompassing both technological enhancements and meticulous attention to details like signage, is bound to lead to prosperous times and overall growth.

Following a robust first half, in which Associated British Foods plc. witnessed 39% growth in profit, they were projecting huge growth in its full-year profit. That performance was driven mostly by strong margin recovery in both the Primark fashion retail business and food operations. This is only the beginning of the Primark outperformance story, with revenues up 7.5% at £4.5 billion and like-for-like sales growth of 2.1%. They see further success as new store openings continue and thus maintain sales growth. Furthermore, Primark has forecasted an improved adjusted operating margin of moderate nature in the second half, reflecting the better product costs and a reduction in the shipping cost. On the grocery side, the division continues robustly with brands such as Twinings, Jordans Dorset Ryvita, Kingsmill, and Ovaltine. In this area, too, a strong improvement in their profitability is expected. Strategic initiatives in place across their business units are paying off despite a soft consumer environment. As usual, Primark will be vigilant towards global market conditions, which now include monitoring the situation in the Red Sea but are not expected to experience serious disruptions. #BusinessGrowth #RetailSuccess

An interesting article in The Times looks at Primark's steady expansion in the US. While phenomenally successful, the chain has taken a deliberately cautious approach to growing stateside - learning from past European brands' mistakes in the American market. As the article notes, Kevin Tulip's leadership as President of Primark US has been instrumental in the brand's success, focusing on strategic expansion and adaptation to American tastes. With plans to open 100 more stores globally by 2026, including a significant focus on America, Primark aims to stand out in a competitive retail landscape dominated by discount giants like Walmart and Target. Primark's approach combines affordable pricing with quality products, is resonating well with American consumers. By adapting to local tastes and leveraging licensing deals with popular franchises like Disney and sporting leagues, Primark aims to cement its position in the American retail market.

When Primark was plotting its US entry in 2014, among the first people the Dublin, Ireland-based retailer hired was a head of human resources. The company went with Susan Hoffman, a 30-year veteran in the field, mostly at PepsiCo and BJ’s Wholesale, to head up what’s known internally as the people and culture team. In the US, that title carried extra weight: Hoffman was tasked with helping a leader brought in from Dublin navigate the “geographically complex” and “incredibly diverse” US market, said John Hadeed, who succeeded Hoffman in the role after she retired in 2021. “Those first hires have to be rooted in what’s critical to running the business and understanding the local market,” he said. “We want to show up as Primark in the US, we don’t want to show up as some American version of Primark.” Primark is one of a growing number of European and Asian retailers in the midst of major US rollouts. The Irish retailer opened roughly a dozen stores there last year, with plans to reach 60 locations by 2026. Spain’s Zara and Mango and Japan’s Uniqlo are also expanding their footprint; the latter is doubling its North American store count with 20 new locations this year. The US is the biggest apparel market, and its consumers have proven more resilient than in other major economies. But breaking through is hard; what works in a retailer’s home country doesn’t always translate to an American audience. For every H&M or Zara, which have operated successfully in the country for decades, there’s many more Uniqlos, which have needed multiple attempts to build their US business. Read the full story by BoF's Sheena Butler-Young.

Today’s results from Primark defy the retail industry's year-end slump with revenue up 7.5% to £4.5bn, marking a robust performance in H1. Despite prevailing market headwinds, the retailer’s prudent pricing strategy, marked by selective increases and steadfast value proposition, continues to resonate with cost-conscious consumers and underpins the business’s long-term resilience. Strategic measures including careful stock management and cost containment have helped to significantly improve Primark’s operating profit up 46% to £508m, marking a close to the business’s battle with inflation, and an impressive recovery of margin to 11.3%. Furthermore, the expansion of click-and-collect services underscores Primark's adaptability to the evolving digital landscape, promising further growth opportunities. The outlook for Primark remains promising, fuelled by continued store expansions to drive volume and investment in digital advancements. With a firm grip on its operational levers and unwavering consumer appeal, Primark stands poised for a bright future in the fast-fashion realm.

Primark ’s strong performance is set to be the talk of Associated British Foods PLC (LSE:ABF)’s full-year update on Tuesday, 7 November. Expectations are that the fashion retailer will pen like-for-like sales growth at roughly 9% to £9 billion for the year, as laid out by ABF itself last month. Falling energy, freight and material costs are also expected to have aided margins, which are tipped to come in around 8% for the year. “The key Primark business has benefitted from a changing retail landscape over the past few years, especially with the demise of Debenhams and Topshop,” Hargreaves Lansdown analyst Aarin Chiekrie explained. Price hikes have also helped, Chiekrie said, alongside the opening of new Primark stores. Though specific guidance for the retailer’s upcoming year seems all that’s left to be keenly awaited, questions around ABF’s other business could still be asked. More at #Proactive #ProactiveInvestors #LSE #ABF #primark http://ow.ly/91ml10500jK

Great to see brand licensing called out specifically in this as a way in which Primark stays relevant and draws people into store - including in new stores in the US. #retail #brandlicensing #licensing #fandom https://lnkd.in/epSQmaf6