Home / Knowledge / News / Apparel/Garments / Why is M&S losing ground to Primark?
Why is M&S losing ground to Primark?
23
Nov '13
Britian’s biggest clothing retailer, Marks & Spencer (M&S) is losing market share to smaller rivals such as Primark as austerity pushes hard-pressed Britons towards trendy budget fashion. 
 
M&S, the 129-year old brand, is in a stiff battle for survival as fast-fashion chain Primark gains foothold in the British clothing retail industry.
 
Latest financial results of the two companies tell two different versions of the British high street.
 
While Primark, which is part of the Associated British Foods group, and was launched in 1973, reported a 22 per cent surge in revenues to 4.27 billion pounds in the year to September 2013, M&S continued to see sales plunge for the ninth straight quarter.
 
Primark reported a 5 per cent increase in like-for-like sales in the year to September 2013, a stark comparison to M&S which saw like-for-like sales dip by 1.3 per cent in the three months ended September 28, 2013. 
 
The impressive revenue performance saw underlying profits of Primark rise 44 per cent to 514 million pounds in the year to September 2013, while M&S disappointed as underlying pretax profit slipped by 8.9 per cent to 262 million pounds in the six months ended September 28, 2013. 
 
One of the main reasons for Primark’s overwhelming performance is the difference in pricing of its offerings with M&S. With its fast-fashion focus, Primark offers discount clothing which provides value for money to cash-strapped Britons.
 
In these times of austerity, where wage growth is lagging consumer inflation, young Britons are flocking towards fashion brands which are offering trendy but affordable clothes such as Primark, compared to M&S which is catered mostly to the more affluent classes.
 
A Primark jumper costs just 3 pounds, compared to an M&S classic merino wool rollneck priced at 99 pounds.
 
Primark’s success comes despite the fact that it doesn’t sell anything online. While most fashion brands are trimming real estate space, Primark is adding new stores. Primark’s shop layouts which include video screens and cool displays may also be one of the reasons why it is attracting more footfalls.
 

Fibre2fashion News Desk – India

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search