Primark is launching a new in-store product click and collect service across the North West.
The company will offer 2,000 children’s products while trialling click-and-collect services in 25 stores, giving those living closer to a smaller Primark access to a much wider range of items.
Parent company AB Foods said on Monday: “Our average sized stores can only carry a limited range and for these customers the number of options available to them will broadly double, increasing even more for customers of our small stores. This effort will allow us to offer more fashion, royalty and lifestyle products to more customers, more often.”
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The company said its new UK website, which launched in April, has proved popular. Traffic to the new website has increased by around 60% and nearly 15% of shoppers are checking stock levels in stores. The retailer will deliver the margin that bosses promised a year ago, despite inflation shaking much of the economy.
AB Foods said that Primark “remains on track to deliver a full-year adjusted operating profit margin of approximately 10%.” This is an improvement from 7.4% in the company’s most recent fiscal year, which ended last September.
In November, bosses told shareholders to expect a 10% margin for the current fiscal year as sales soared after stores reopened after lockdown. In fact, in the three months ended May, sales rose 81% year over year.
Even looking further back, to the year before the pandemic, sales are still 4% higher than before. Some of the company’s TV partnerships have proven successful, with branded clothing from Lilo & Stitch and Stranger Things doing well.
It comes despite massive inflation that will force Primark to raise prices in the fall beforehand. In Monday’s trading update, AB Foods said nothing about costs, inflation or prices at Primark.
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