Primark
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| Company type | Subsidiary of Associated British Foods (ABF) plc |
|---|---|
| Industry | Retailer |
| Founded | Dublin, Ireland, 1969 |
| Headquarters | Dublin and Reading |
Key people | Arthur Ryan, chairman and managing director, Seamus M. Halford, Deputy Managing Director, P. Prior, Finance Director, Breege O'Donoghue, Human Resources Director |
| Products | Clothes and Linen |
| Revenue | EUR 1 billion (2005) [1] |
Primark Stores Limited is a chain store retailer in the United Kingdom, Republic of Ireland and Spain. It has around 140 branches. In the Republic of Ireland, where the company's main headquarters are based, it trades as Penneys. The company is a subsidiary of Associated British Foods (ABF) plc, employing over 14,000 people. The company positions itself as marketing fashionable clothing at competitive prices.
Primark's market position
Primark is known for selling clothes at the budget end of the market. The company's success is based on sourcing supply cheaply and the fast turn around of stock in stores.
Penneys' history
The original Penneys store was located in Mary Street, Dublin, Ireland, in 1969, with the first UK Primark store opening in 1973. In early 1995, Primark acquired Bhs's OneUp chain. In line with corporate policy, the Irish stores were rebranded as Penneys, and the British stores were rebranded as Primark. OneUp was Bhs' attempt to enter the budget market and so keep its bottom 15-20 stores profitable. This purchase more than doubled the then size of Primark. (Bhs later temporarily re-entered the Irish market, but have since withdrawn again). As of 2000, Primark's Hounslow store in West London was the store with its biggest cash turnover. It is one of the former OneUp stores.
Primark is a retail group in the value sector employing over 17,500 people, increasing to 26,000 over the next year. Primark operates a total of 148 stores in the UK, Spain and Ireland, where it trades under the Penneys brand. By March 2007, a further 23 stores will be trading. It was first established in 1969 as Penneys in Mary Street Dublin. On 20th September 2006, Primark opened its second store in Spain in Nueva Condomina Shopping Centre, Murcia.
In the financial year starting 17 September 2006, seven new Primark stores have opened – Burton on Trent, Camberley, Glasgow Parkhead, Inverness, Murcia (Nueva Condomina), Plymouth (Drake Circus) and Oldham. One store has added additional space – Athlone. While in the previous financial year, 27 new Primark stores were opened, six smaller stores closed due to relocation and three stores added additional space.
Primark has several brands, which include Atmosphere, Secret Possessions, Primark Essentials (for Womens, Mens and Children's quality basics), Early Days, Rebel and Young Dimension.
Prior to 1997, Penney's often shared sites with Power Supermarkets (PSL), also an ABF subsidiary at the time. However, this practice ceased after the sale of PSL to Tesco in 1997. ABF decided to maintain control of Primark, despite it being the only non-food retailer under its control.
Notable property acquisitions
In the late 1990s, Primark acquired several premises from former C&A sites. It also purchased the former Lewis' Department Store in Piccadilly, Manchester. Primark's UK headquarters are located in Reading, in a former Co-Op Department Store.
In February 2005, Primark bought six former Allders sites from their administrators, Kroll.
In July 2005 Primark/Associated British Foods purchased the 120-branch Littlewoods retail chain for £409 million.
In December 2005, Primark acquired the lease of the former Allders site on Oxford Street in central London, and it opened as a Primark store in April 2007.
26 January 2006 saw the opening of a new four-storey Cardiff shop. On 19 May 2006, the company opened its first Spanish branch, in the Plenilunio Shopping Centre outside Madrid.
On the 24 November 2006, the company opened the second-largest Primark in the UK, in Hanley, Stoke-On-Trent.
On the 5th April 2007 Primark opened a flagship store on Oxford Street in London's West End, attracting hundreds of shoppers who were kept in check by mounted police.
The Manchester store is currently the largest in the UK.
Store Structure
The person who has overall control of a Primark store is the store manager, supported by a larger structure within their store. In larger stores there will be an Assistant Manager directly below the store manager. Next there are senior department managers and then department managers in charge of their own department. Non-managerial staff includes supervisors, department staff, till staff and cash office and stock room staff, not forgetting changing room staff.
Departments
1 - Accessories
2 - Hosiery
4 - Lingerie
5 - Children's Wear
6 - Men's Wear
7 - Footwear
8 - Woman's Wear
11 - Household
23 - Toiletries
24 - Christmas
26 - Sports Wear
Primark own brands
The company has several own brands, including:
- Active — Sporting Boyswear
- Atmosphere — Womenswear and Accessories
- Butler & Webb — Formal Menswear
- Cedarwood State — Casual Menswear
- Denim Company — Womenswear, Casual Men's and Childrenswear
- Early Days — Babywear
- Girl 2 Girl — Younger Girlswear
- Rebel Active — Older Boyswear
- Rebel Junior — Younger Boyswear
- Secret Possessions — Lingerie and nightwear
- Young Dimension — Older Girlswear
- Primark Essentials - Value, Low Price Items(or underwear)
- Primark Home - Home Items
Controversy
In 2006, Primark came under criticism for the working conditions in factories overseas, by campaigners who claim that it exploits workers to get cheap prices and fast speed-to-market. Reports such as War on Want's "Fashion Victims" [2] and two reports by Labour Behind the Label [3],[4] are some examples. Both organisations express concern over the following quote from Managing Director Arthur Ryan:
One story tells of how Ryan was approached by a factory owner with a product costing £5 that would sell for £10. Ryan reportedly told him he was not interested unless he came back with a product that cost £3 and could be sold for £7. “I don't care how you go about it - just do it,” he said.[5]
In its defence, Primark's head of Public Relations Geoff Lancaster said the company was trying to raise standards in Bangladesh, adding:
We use huge volumes, deal directly with suppliers cutting out the middlemen and do not advertise. That's how we get best value. [6]
Primark have recently signed an international trade agreement, whereby they state that they do not use child labour or sweatshops. All workers in their associated factories are paid a living wage that as a bare minimum covers all their basic needs and are consistent with local wage laws. All associated factory are paid the equivalent of at least the UK minimum wage in their country. Primark has deals with factories in Madrid and Vietnam and do not manufacture clothing in Bangladesh.
Trivia
- In England the name is generally pronounced Pry-mark. In Wales, Scotland and Northern Ireland the name is usually pronounced Pree-mark. This usage extends to TV and Radio advertising.[7].
- In popular British soap Eastenders, character Stacey Slater's clothes stall is stocked with Primark clothing. Close ups often show the Atmosphere and Secret Possessions labels and they are often on their original Primark hangers with the distinctive dual colour size stickers.
References
- Alam, Khorshed (2006-12-08). "Fashion Victimes" (pdf). War on Want. Retrieved 2006-12-10.
{{cite web}}: Unknown parameter|coauthors=ignored (|author=suggested) (help) - Kehoe, Ian (2006-08-01). "The very private Ryan". Sunday Business Post. Retrieved 2006-12-10.
- Ramesh, Randeep (2006-12-08). "An 80-hour week for 5p an hour: the real price of high-street fashion". The Guardian. Retrieved 2006-12-10.