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MARK FAITHFULL

Following the Money

Following the Money – For the last time as we bid
him a fond farewell from his monthly column, Mark
Faithfull crunches the numbers as he looks at analysis
and expansion that reflects changing markets.

Primark to take £2bn inflation hit but continues US expansion
The owner of Irish fast fashion giant Primark is expecting to take a
total hit from inflation of £2bn this year and next.
However, the group also plans to push ahead with expansion in the
US and will open 10 more stores there in the year to September, on top
of the 13 stores already operating in North America.
Indeed, the US remains a buoyant market for Primark and total Q4
sales should be around 27 per cent ahead of pre-Covid levels, the
company said, driven by new store openings, with comp. sales close to
pre-Covid levels.
However, parent company Associated British Foods (ABF) said that
it had encountered what it described as the most challenging economic
conditions for many years, with sharply rising and broadly based
inflation, with prices at Primark up by about eight per cent this autumn.
Primark said it would close two stores in Germany and optimise
further stores as sales have not returned to pre-pandemic levels.
The company reported caution in consumer markets across
Continental Europe.
Primark also recently announced that it will launch its new click &
collect service in 25 stores located across the North West of England,
Yorkshire and North Wales before the end of the year and Primark
Chief Executive, Paul Marchant, has continued to stress his company’s
dedication to store-based retail – not least with the recent opening of
its spectacular Belfast, Northern Ireland flagship – and he said that the
company want to grow its stores to 530 from the current 408 by the
end of the 2026 financial year.

Online giant Shein opens first permanent store in Tokyo Printemps to open New York store following luxury virtual launch
Chinese fast fashion giant Shein has opened its first-ever permanent French luxury department store Printemps is to open its first
store, located in the fashion district of Harajuku. international store at One Wall Street, New York and has created a
It opened its doors on 13 November and customers can browse items virtual store as it seeks to create a global omni-channel platform.
at the store and purchase them by scanning QR codes on tags via the Marking the brand’s first US initiative, Printemps will open in the historic
Shein App. However, they cannot purchase directly from the store, but 50-storey landmark building in the Financial District with a 54,000sq ft,
instead will order merchandise and accessories to be delivered. two level-store in Spring 2024.
The space spans 2,160sq ft over two storeys and includes three fitting Printemps Digital Marketing Director Morgane Lopes says that the
rooms and an Instagram photo booth. It may also be modified to host US “was always on our roadmap” and says the focus will be on creating
fashion shows and designer events, according to a Shein spokesperson. an “experiential lab” where Printemps can try things out in “the most
The opening follows the launch of the Shein Osaka pop-up store, digitally advanced market in the world”.
which will remain open for three months until 27 January. Located in She adds: “It will provide an opportunity for us to learn about new
Japan’s western metropolis, the pop-up store houses nine fitting rooms types of service and leverage New York best practice across our whole
and displays around 800 items, ranging from men’s and women’s wear business. Things are moving so quickly in Asia and the US that, as a
to home and pet products. French retailer, we have to keep up.”

50 RETAIL & LEISURE INTERNATIONAL NOVEMBER 2018