Within hours of administrators taking control of fashion retailer Peacocks last week, rival Primark had a different story to tell.

Within hours of administrators taking control of fashion retailer Peacocks last week, rival Primark had a different story to tell.

Sales at Primark surged 16% over Christmas in what was described as an “exceptional” performance. While the future of Peacocks’ stores was cast into doubt, Primark was planning more openings. Despite its relentless rise over recent years, Primark is still unfairly characterised by some as just a pile-it-high-and-sell-it-cheap merchant of socks and knickers by the kilo.

Certainly low prices have been pivotal to Primark’s appeal since day one, and the retailer has never lost sight of its founding principles. The culture of the business today looks exactly like that established by the legendary Arthur Ryan, who made it the efficiently run, consummate selling machine that it remains.

While others put up prices as the cost of cotton climbed, Primark stuck to its guns and chose to absorb the extra rather than pass it on to customers. But while sticking to its knitting has served Primark well, it has not stood still. The business has constantly developed.

It’s not just the fashion sense that resulted in ‘Primani’ buying habits. The retailer spotted and is taking advantage of international expansion opportunities, has extended its cachet through a tie-up with Selfridges – admittedly still at an early stage – and opened flagship stores, such as Oxford Street and Edinburgh, that are real destinations.

In short, Primark has invested in building its business. Something that a few of its failed, trailing or indebted rivals have conspicuously struggled to do.

Extended profitability

Another retailer sometimes unfairly knocked but with tips to pass on is bookseller and stationer WHSmith.

Few would argue that its stores are the most inspiring, and the perennial question about how long profits can rise while sales fall remains. But there have been key advances. In its seasonal update, the retailer noted that November and December now account for less than half of full-year profits compared with more than 90% six years ago.

The reliance of many retailers on a few peak trading weeks for the bulk of their earnings makes for serious nail-biting and can make or break a business. There may be aspects of WHSmith that grate, but a lengthier period of profit generation is surely worth replicating.