Discount clothing chain Primark has reported “exceptionally strong” results for the six months to 2 March, which has helped drive a 26% increase in pre-tax profits for parent company Associated British Foods. Primark reported a 24% increase in total sales, while like-for-like sales were up 7%.
While much of the high street seems to be struggling, Primark’s focus on cheap clothing seems to be a winning strategy amongst consumers.
YouGov’s brand perception tool, BrandIndex, shows that while consumers clearly have a high perception of Primark in terms of value, they have a much lower regard for the company in terms of quality. Currently, Primark’s Value score stands at 18, while its Quality score currently stands at -33.
This focus on value, even at the expense of the perceived quality of clothing items, has certainly benefited Primark. While other retailers such as Marks & Spencer are reporting declining sales for the first three months of the year (3.8%), Primark’s focus on value for money is certainly paying dividend.