Hernandez Moya Sebastian
Sep 15 2021
Primark will maintain its pricing strategy. This means that despite supply difficulties, there will be no price increases in the clothing and lifestyle retailer’s offering. This was stated by John Bason, the CFO of Primark’s parent company ABF.
Bason has assured shoppers that they will not pay more for their clothes despite inflationary pressure, while the “disruption of cargo transportation in ports and containers” has caused supply problems when transporting their products made in Asia and other regions.
Although the retailer also said it is experiencing “some backlogs” in fall / winter inventory as a result, Bason said the group is “not concerned” about stock levels for Christmas and this is not expected to affect sales. customers.
“There has been a supply chain disruption, but our team has worked incredibly hard to mitigate it, so I do not anticipate this being a problem for customers,” he confirmed.
“We are definitely seeing a lot of inflationary pressures in different parts of our supply chain, but there is absolutely no intention to increase prices at Primark because of that. The reduction in personnel and operating costs have helped us to compensate for this ”.
However, Primark admitted that the Covid-19 restrictions had “slowed” the company’s progress in developing its new store projects, due to difficulties in evaluating new locations and negotiating with potential owners.
Despite those issues, the group updated its earnings guidance on Monday, Sept. 13, despite sales falling below expectations after lockdowns from the pandemic hit customer confidence in July.
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