Primark’s seasonal ranges prove a sell-out

Primark hailed an "outstanding year" after its annual profits jumped by 44% to £514 million.

The high street retailer, which has no online presence, said profits leapt 44 per cent to £514m in the year to September 30.

The chain, which specialises in sophisticated, fast fashion at very cheap prices, has seen strong demand for its new tartan, tweed and leather collections.

Its fans refer to the chain as ‘Primani’, made up of Primark and international Italian fashion house Armani, hinting at the chain’s ability to replicate very cheap versions of designer fashion collections.

Primark has performed strongly throughout the economic downturn thanks to its low prices, but these came under scrutiny in April after 1,129 people died in the collapse of a factory in Bangladesh, where its clothes were being made.

Last month Primark, owned by Associated British Foods, laid out plans to pay more compensation for the disaster.

The retailer has committed to provide long-term financial compensation to victims and said it was the first UK brand to sign an accord aimed at ensuring sustainable improvements to working conditions in the country’s garment industry.

ABF’s chief executive George Weston dismissed suggestions that Primark’s success is dependent on hard times, saying that the brand grew strongly before the financial crisis.

In light of the improvement in the economy, Primark is now moving more towards high fashion with less focus on discount basics as spending power recovers.

Primark’s annual revenues rose 22 per cent to £4.2bn, helping ABF to raise adjusted pre-tax profits by 13 per cent to £1.096bn on revenues of £13.3bn.

ABF is to increase Primark’s expansion with plans to add a million square feet of selling space in the coming year in Britain, Spain, Germany, France and the Netherlands.

“We’re really at the very early days of expansion in continental Europe,” said Mr Weston.

Primark will open its first store in France in December, one of 13 openings it is planning in time for Christmas.

ABF said it expects another improvement in Primark’s performance in the current financial year.

It paid tribute to Primark’s buying teams after autumn/winter and spring/summer ranges sold out with very little being offered at a discount to the full price.