Primark has very cleverly entered the Euro clothes market which has since long been hit by the financial crisis. Primark comes with the cheap chic formula which directing focus towards offering affordable clothes and also encourages the fashion designers and brands to display their collections on street sides rather than fancy and exquisite fashion shows.
Because of providing cheap clothing option to the recession hit customers, Primark was the only brand which flourished in the recession hit Euro zone and sailed through. The customers were either attracted because of the reasonable prices or because of the large sized depots Primark has all over Europe. Nobody will let go a pair of good and decent shoes which are only for as low as ten dollars. This is what makes Primark so unique from the rest of the clothing stores which have stayed popular.
Even despite the difficult economic situations, Primark didn’t give up and continued to open up stores in parts of Europe. The most profitable stores are operating in Spain. Primark has over 156 stores in Europe and this alone is pretty much enough for explaining the stores’ success even during economic conditions such as these. During the recession periods the chain of Primark stores has absorbed the high cotton costs themselves rather than forcing them onto the customers. This explains why Primark remains a customer attraction and why it attracts so many people who prefer buying on a budget. The cotton prices have been going down and soon the profits will reach the top.
Even the high street rivals in UK have been left behind Primark and Primark certainly seems to be making a mark here. Thanks to the success in the Europe continent, the Primark stores have been experiencing all the benefits of the economies of scale and huge amounts of sales especially around the Christmas season. The economies of scale mean that Primark can very easily source in clothes and the best thing about the stores is that they have always remained successful at attracting customers. The objective of Primark in Europe is to provide all the customers being affected by the recession a place which satisfies their fashion needs and will also look after their budgets.
Primark has opened up seven outlets in Madrid alone and there are about four in Spain where Primark has also employed about 3500 people. They have stores all over Britain, Spain, Netherlands, Belgium, Germany and Portugal and they will continue to build more wherever the opportunity seems profitable.