It'll never fly - Primark

Management Today 01-Mar-06

The fashion chain run by the makers of Ovaltine peddles heaps of own-brand clothes in a badly-lit, bargain-bin smash-and-grab.

That it's a hit with budgeting youngsters doesn't raise an eyebrow. More
surprising are their opponents in the scrum - label-conscious yummy
mummies with one eye on the £6 gypsy skirts and the other on the

fashion mag spreads.

Unlike struggling high-street mainstay M&S, Primark knows what it
is.

It's cheap, and proud of it. It doesn't blow a penny on flashy
advertising but it relies on word-of-mouth and puts its cash into its
buyers and hi-tech stock management. It scouts what's happening on the
catwalk and gets stuff on the shelves quicker than you can say
'sequinned shrug'. The result: a constantly rotating stock that has
former label snobs rummaging for the biggest bargain and running to
their mates to brag. If it doesn't work, no problem - it's budget/bin-it
shopping.

Owner Associated British Foods reported Primark profits at £613
million last year (up 30% on the previous 12 months), while results for
Next and M&S slumped. And it's set to up the ante when it opens its
flagship Oxford Street store in 2007.

To cap it all, Primark - quietly doing business since 1969 - last year
confirmed its acceptance into the fashionista inner circle with
appearances on the hallowed pages of Vogue. Its military jacket (£12) appeared opposite a strikingly similar offering from Balenciaga
(£1,190).