Better the devil you know

The subject of last Sunday’s pulled Channel 4 documentary, billed as an exposé of low-cost fashion, would probably have done little to dissuade its troops of loyal shoppers who regularly crowd their favourite value fashion retailer.

Primark is on track to topple Marks & Spencer from its spot as the nation’s favourite retailer after its market share rose 2 per cent over the past year.

The decision to axe the show was taken so last minute that it got tongues wagging about whether or not Channel 4 had got itself into hot water by linking Primark to a story about sweatshops. Channel 4 says the show wasn’t ready.

But do these kinds of programmes have an impact on Primark’s clientele? Especially a consumer hard hit with an ever-shrinking wallet. In some respects, in tough times it’s better the devil you know and trust.

And Primark seems less than concerned by the dwindling footfall figures hitting many of its rivals. The Primark juggernaut keeps on rolling.

The retailer, which knocked so many of its value fashion peers for six when it hit UK shores, is raising temperatures in Europe, finally confirming plans to expand. As revealed by Retail Week (October 5, 2007), Primark will open its first stores in Germany, Portugal and the Netherlands next year.

After success in Spain with just five stores, the retailer is ready to roll out the concept further and wants 50 stores in the country.

Retailers such as H&M and Inditex’s Zara are most likely to be girding their loins for the march of Primark across the Continent.

John Bason, finance director of Primark parent company Associated British Foods, maintains that there is still good growth to be had in the UK and Ireland. But with volume growth at Primark understood to be slowing in line with volumes across the whole sector, it is wise to be branching out into further markets.

Success for the retailer on new shores seems assured and overseas rivals will undoubtedly feel a pitchfork in their behinds and have to get up to par quickly. Stopping the Primark powerhouse seems as likely as hell freezing over.