Primark: first step towards e-commerce in fall-winter?
Will the accessible Irish brand soon be sell online? Although it denies it, this is what launching a showcase site for its fall-winter lines suggests.
Primark’s director of development, Breege O'Donoghue, has indicated as much to the German magazine TextilWirtschaft. Until now, Primark has only had a symbolic presence on the Web, preferring to encourage traffic in physical stores. Since the company’s business model is based on low margins, management has long been deterred by the significant logistics cost posed by online sales, which result in even lower margins.
The showcase site is expected to display around 70% of the retailer’s range and to only offer information about products. For now, the site features a few looks and information is limited to some prices, plus a shopping search tool and a section about the retailer’s ethical commitments.
If Primark were to launch an online store, there would be little doubt about its success. Besides the droves of customers who were there for the brand’s debut in France in 2013, the brand just triggered the same enthusiasm in Germany with the launch of a location in Brunswick. No doubt Internet traffic for Primark’s product pages will serve as a test case for a possible launch into online sales.
The accessible clothing brand saw its sales increase by 17% over the course of its last fiscal year ending on September 13, to 4.9 billion pounds. The performance was largely due to the expansion of its retail network, while in-store sales growth was limited to 4%. In the first half-year, which closed at the end of February and for which the results will be posted in late April, the company expects a 16% increase in sales, as compared to 12% one year earlier.
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