Primark Hired Product Director To Stimulate Overall Demand And Growth.

According to the world clothing and shoe net, Primark is facing weak growth in organic sales and the United States as the driving force of revenue, profitability and share price driven by Associated British Foods PLC (ABF.L)

The challenge of expansion is blocked.

The Irish parity

The brand recently hired the world's fastest.

The former product director of Zara brand is responsible for the women's clothing department to stimulate the overall demand and growth.

Although Primark has achieved 12% revenue growth in the 2017 fiscal year, its store sales increased by 1% over a year, and this has improved by 2% compared with the 2016 fiscal year.

The same store sales growth this year was mainly driven by the 4% increase in the UK market, which accounted for 55% of the brand.

In Europe, with its very low price, the Primark, which captured the young consumer group, opened 8 stores in the northeast after its march into the US market in October 2015. However, due to its less than expected performance, the Associated British Foods PLC Union food group has announced that it will reduce the size of the three shops.

Craig Johnson, President of the Customer Growth Partners of the consultancy, told the Wall Street journal that most of the stores were located in the shopping mall, and the working day was difficult to reach the high street shops. In addition, the brand adopted a low price promotion policy, which was limited by the Maori, and its profitability base was supported by a huge store area and high sales density.

The data of London investment bank Liberum show that the average store area of Primark's entire sales network is 40180 square feet, 1.5 times, 2.1 times and 3 times larger than that of Hennes & Mauritz AB HMb.ST (HMb.ST) H&M 16146 square feet, Inditex SA (ITX.MC) Indo Textile Group's Zara 12865 square feet, and the Inditex 9915 (2.1) and 2.1 times 3 square feet, and its sales per square foot is 682 dollars, which is higher than the 607 dollar of the 607, the 414 dollar of the dollar and the two dollar of two.

Craig Johnson warned that if a single store fails to meet the sales target, the Primark mode will not follow.

Richard Chamberlain, an analyst at RBC Capital Markets LLC, said that in view of the low popularity of Primark and the rejection of e-commerce, it would take much longer for the brand to get popular acceptance in the US. He downgraded Associated British Foods PLC on the basis of last week.

John Bason, chief financial officer of Associated British Foods PLC Ying Lian food group, said that it is now adjusting the scale of Primark stores (reducing the area to increase sales density), and spreading the expansion once the indicators are in place.

Two years ago, the flagship store of Boston Downtown Crossing, which launched the first market in the US, has completed 20% capacity expansion this year, with an area of 92 thousand square feet. The ninth Shop with an area of 60 thousand square feet will be located in Kings Mall of Broolyn, New York, in the summer of 2018.

Analysts have never stopped questioning Primark's absence from the electricity supplier market.

Online sales can, of course, push Primark to consumers with wider geographical scope, but the added cost of logistics and return will be unaffordable for the parity brand.

The US Retail Federation NRF data show that returns account for 25% of online retailers' annual sales, which is also one of the reasons why e-commerce profit margins are not even as good as physical stores.

John Bason says that Primark can withstand a very low price relative to upward sales, because it stimulates sales more than one, but promotes sales surging.

But at the same time, he opened up the way for e-commerce. He said he did not rule out the day when he would launch online ordering and store picking services for Primark.

According to Macquarie Group Ltd. Macquarie, the average price of women's jeans in Primark, H&M and Zara is $9.38, $12.05 and $26.79 respectively, while Primark's men's sweaters can be as low as $8.04, while H&M and Zara can reach 24.11 US dollars and 21.43 US dollars respectively.

Paula Dumont Lopez, once the product director of the Zara product line Zara Basic, will be joining Primark in January. Sky News said Primark's move was not aimed at improving brand positioning. The Daily Telegraph pointed out that Paula Dumont Lopez will be an important member of the international development strategy.

In fiscal year 2017, Primark has opened 19 stores in 8 international markets outside the UK, while the UK has added 11 stores to the net. As of September 16th, the brand has 345 stores in ten European countries and the United States.

In the current fiscal year 2018, Primark intends to increase the retail area of 1 million 200 thousand square feet, down from 1 million 500 thousand square feet in fiscal 2017, and France, Germany and the UK will have the largest number of new stores.

After several years of investment in warehousing capacity, the group has no investment plan this year.

Primark adjusted annual operating profit rose 6.7% to 735 million pounds a year, but the adjusted operating margin decreased by 120 basis points, from 10.4% in the 2016 fiscal year to 10.4%.

Paula Dumont Lopez has served Zara for more than 10 years. In 2013, job hopping Esprit Holdings Ltd. (0330.HK) was launched as the senior vice president of Esprit Woman.

This year, she was hired as the chief creative officer by New Look Retail Group Ltd., but was abandoned as the chief executive of the high street retailer, Anders Kristiansen, was fired.

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