Primark calls for longer Christmas opening hours post-lockdown

Primark parent ABF’s finance director John Bason told Retail Week that being able to open for longer when the new Covid lockdown in England ends at the start of December would be good for shoppers and their safety during peak.

Primark saw a steep fall in sales and profits because of the first lockdown but bounced back strongly. 

That was a testament, Bason said, to the strength and value of its offer. He expected the same at the end of the latest closure of so-called non-essential retail that starts on Thursday. It falls in the middle of retail’s golden quarter and, along with similar restrictions overseas, is expected to cost Primark £375m in lost sales.

Bason said: “We’d look for longer opening hours. There will be big demand. It’s busy enough at Christmas in normal times, never mind now. It’s not about creating crowds, it’s about managing and spreading demand.”

Online sales have rocketed during the pandemic but Primark’s low prices mean it has not found an economic ecommerce model. However, its stores have won destination status among many consumers and it has built market share.

Bason said: “When we’re open, we trade profitably. We’ve not changed our desire to open space. Have we been hurt by a loss of sales and profits when stores were closed? Yes – but we make decisions on what is sustainable, not just a few lost sales.”

However, Primark has not closed the door to eventually developing a click-and-collect service, which it has considered for some time.

Bason said the retailer was better prepared for the experience of lockdown this time around, having been through it already, and had strong liquidity.

He said: “We’re not resistant to lockdowns. If they’re needed, so be it. We believe we’ll come through.”

Broker Barclays observed: ”Market shares in the UK are back to pre Covid-19 levels. Offline market shares in the UK are up somewhere in the realm of 50% as it is taking enormous share from the likes of M&S, Debenhams, New Look, Gap and Arcadia.

”Its high street offer is a standout in terms of investment, excitement and differentiation. Despite being a bricks and mortar only retailer, Primark can still win and continue challenging the consensus that only online players can succeed.”