One of the few international fashion chains which does not have an online shopping facility, Primark has been at the mercy of the ebb and flow of customers in its physical premises – and with varying restrictions and lockdowns across Europe since March 2020, sales have taken a battering.
The chain, originally from Ireland but now owned by Associated British Foods (AB Foods), recorded a fall of 40.5 percent in its sales from 2019, taking a hit valued at around €1.28 billion.
Although it tends to be associated with the UK high street, over half of Primark stores open for trade worldwide at the moment are located in Spain – 42 out of the 77 stores – since, in other countries, including in Britain, lockdowns mean any business premises not considered ‘essential’ is unable to operate. At the height of the ‘third wave’ of Covid cases in Spain, only 10 of Primark’s 50 stores nationwide were shut.
Even in the run-up to Christmas, much of the UK was on what was then the maximum restriction level, Tier 3; by Boxing Day, the whole of London and the south-east of the country was on Tier 4 and, by around New Year, back in full ‘stay-at-home’ mode. In Spain, however, non-essential shops were only closed from mid-March to May, after which retailers were practically all open again subject to limitations on numbers of customers on the premises.
As a result, Primark’s sales fell by 15 percent overall in Spain in the last year, but in other countries with stricter measures, the drop has been drastic – on occasion, and in some parts of the world, by 100 percent.
In a normal year, Primark Spain would account for around 20 percent of the brand’s sales – in 2019, turnover for Spanish stores came to €1.5bn out of the total of €8.5bn. Spain has the second-highest number of Primark branches by country in the world, beaten only by the UK. Over the last year, though, from September 2020 to February 2021 inclusive, Primark’s turnover was around €2.56bn, of which more than 50 percent came from shops in Spain.
Only a handful of Primark stores in Spain are waiting to reopen – fewer, in fact, than anywhere else on earth – and the company is expecting to be back in full business on Spanish soil earlier than in any other country.
Britain continues to be Primark’s biggest market, meaning that although Spain has ‘saved’ the brand thus far, the company is pinning its hopes on Prime Minister Boris Johnson’s announcement that the nation will start to ‘reopen’ from 8th March.