In the wake of Covid 19 restrictions coming to an (eventual) end, it’s fair to say that we have seen the collapse of nameless companies across the nation. Debenhams, Victoria’s Secret, and Monsoon have all fallen to victim to the shutdown of the country as they were forced into administration. So how did Primark survive with no online presence?
To truly understand just how much revenue was lost, we need to turn to the statistics. Compared to a massive £7.79 billion made in 2019 across its 375 stores, a big fat zero was made once Covid struck. Whilst other retailers were still gaining (maybe even bettering) profits through their online stores, Primark was at an absolute standstill. In fact, it is estimated that Coronavirus cost Primark around £800 million – meaning a lot of jeans would have to be sold to make up for that deficit.
Whilst other retailers were still gaining (maybe even bettering) profits through their online stores, Primark was at an absolute standstill
Now, Primark are slowly converting to the world of e-commerce. In a hybrid that sticks to the true, physical nature of the store, the company have introduced a Click + Collect option. This feature is currently only being trialled in twenty-five stores in the Northwest of England, Yorkshire, and North Wales. It allows kids and nursery clothing to be selected online, before being available to pick up from the store just two days later. This move comes as a large revamp and sees an exciting move for those who love to shop without worrying about whether they will drop.
Primark’s Chief Executive Paul Marchant spoke about the advancement, saying “it’s a very proud moment to see Click + Collect go live… the trial offers the convenience of browsing and shopping from the comfort of your own home”.
Amidst all of this progression, it is a wonder how Primark remains one of the nation’s most beloved stores. It’s fair to say that its competitive pricing still acts as a magnetic force that drags loyal customers straight back into its doors. If we’re being completely honest, we have all ended up at the Primark tills spending much more money than expected. That’s because all of those £3 t-shirts add up. Customers are therefore almost tricked into their purchases due to the justifiable prices, and we often end up spending more than we would in slightly more expensive retailers.
Once restrictions were eased there was inevitably a wave of eager shoppers, with slightly different shopping habits. The Loyalize CEO David John explains how “recent data shows that since re-opening, customers have been visiting less but spending more”. This could be because of many different factors, and people may not see the point in unnecessary trips out.
Customers are therefore almost tricked into their purchases due to the justifiable prices
As well as this, a term that has been coined in the post-lockdown habits is revenge spending. This refers to the idea that all of our pent-up anger built up over those long days stuck inside was finally given an outlet through spending in our familiar shops. Whilst sale levels remain 9% lower than pre-Covid levels three years ago, the spike that Primark faced off of the back of opening up the country will have helped.
Perhaps Click + Collect is the perfect middle solution – allowing people to shop from home whilst also getting them into the physical store. Maybe one day we’ll get the best of both worlds, but for now it doesn’t seem like an online store is what Primark need.