The reopening of Primark stores in the UK will be met with consumer caution in the long-term, as more than 60% of shoppers in the country are buying less clothing, new figures from data and analytics firm GlobalData show.
UK fashion retailers were given the green light to reopen their stores on 15 June by the government last month.
However, 62% of respondents to GlobalData’s Covid-19 tracker survey, published 3 June, said they have stopped buying, or are buying “significantly less” clothing since the outbreak of the pandemic.
“Although Primark can be confident that the good weather will encourage consumers to purchase items such as T-shirts and shorts – with short-term seasonal spending to fuel immediate sales – over the long-term it is likely that consumers will observe more caution despite Primark’s budget-friendly offerings,” says Arian Bassari, consumer analyst at GlobalData.
“Notably, Primark will not be discounting goods despite sitting on large volumes of stock, and despite Primark’s inherent affordability, a lack of a sale during a time period where consumers are more value-conscious than ever may discourage visits to the store.”
What’s more, GlobalData says the general attitude among UK consumers is that they are not willing to visit shopping centres or malls, with 64% of respondents saying they have stopped visiting such outlets altogether and a further 18% claiming they are visiting slightly or significantly less frequently.
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By GlobalDataWhile Primark has the benefit of being a standalone store, there will continue to be apprehension regarding the safety of visiting shopping outlets, the firm notes.
“Primark’s decision to reopen is based on an apparent strong demand from consumers, and indeed, footfall is naturally expected to grow in the coming weeks as lockdown measures in the UK are eased; however, overall consumer confidence will ultimately determine how the company and other retailers on the high street perform in the next few months,” Bassari adds.
As a result of the rapid spread of Covid-19, all Primark stores were closed over a 12-day period from 11 March. The move has resulted in a loss of sales of approximately GBP650m for every month that all stores were closed.
In an impromptu update last week, Primark-owner Associated British Foods (ABF) said the value fashion retailer has begun placing “substantial” orders for autumn/winter stock and will seek to avoid markdowns on excess inventory as it prepares to reopen stores in England on 15 June.
At that date, Primark expects to be operating from 281 stores representing 79% of total selling space. ABF said in the 1 June update it is awaiting further guidance for its Primark stores in Northern Ireland, Wales, and Scotland and anticipates openings in late June.
