'No fire sale' when Primark stores reopen
The hopes of bargain-hunters seeking a discount bonanza have been dashed by Primark as it prepares to reopen all 153 shops in England this month.
The fast-fashion retailer is preparing to come out of lockdown as soon as restrictions are relaxed on June 15 — but finance chief John Bason warned it has no plans for a massive clearance sale despite a mountain of unsold stock.
The firm said there is no need for discounting beyond its already ultra-cheap prices. Some seasonal products will be put in storage and sold next year, while duvets and staple items such as T-shirts and underwear will remain at full price.
"There are a number of retailers who are financially distressed, who have to sell [stock at a discount] to buy new stock. We’ve got the financial ability to do it [without promotions]," Mr Bason said.
Bosses said they have been placing substantial orders for autumn and winter clothes as stores eye a recovery in demand.
The fast-fashion retailer had to shut all of its 376 stores in the UK and abroad as the outbreak took hold, at a cost of £100m a month.
By June 15 it plans to reopen 281 stores including those in England. The company - which reopened sites in some other countries such as Austria, Spain and Germany last month - has already taken a £234m hit from leftover spring and summer clothes.
Primark cannot afford to discount heavily because doing so would erode its profit margins.
It has £1.5bn worth of stock and expects to receive a further £400,000 of items that had already been ordered.
Trading has been encouraging, the company said, with queues outside most stores, and customers spending more money. It warned, however, that the pattern could be down to pent-up demand.
Children’s clothes, leisurewear and pyjamas, along with summer products such as shorts and t-shirts, have been selling well due to the hot weather.
Primark has put 68,000 staff on various taxpayer-funded schemes in different countries to keep a lid on costs during the height of the crisis.
Shopper numbers will be limited to ensure the 2 metre social distancing rule is followed and every other till will be shut when the company restarts in the UK.
