Had to visit Primark on Oxford Street twice last week for shopping with family !
I had heard this from two other informed sources: that Primark is killing the other retailers on Oxford Street. Of course, it’s not that black and white. But, after having visited the place, I believe it is more on the true side.
At a 70,000 square-foot location, Primark has (1) captured a lot of the competition’s share of wallet and (2) grown the market. Many websites, including Time Out, advise you to stay well clear of the shop during lunch hours and school holidays.
Will a female shopper who used to go to Zara or higher brands spend a lot of time at Primark? Probably not, but those who used to go to H&M, Next, M&S surely seem like.
I think by providing amazingly low prices, even for their “premium” store, they have provided a new High Street business model that was missing till now. I believe a significant proportion of the mass market, who could not afford Oxford Street regularly till now, are now almost-loyal to Primark as it has let them access it. The quality is not great, everyone knows, but on many products, it’s not as bad as you might think. Volume has always allowed them to lower their margins, and they have made sure Oxford Street is no different. And the shopping experience: well, for me it’s unbearable but didn’t seem so for the 100’s and 100’s who were lining up to buy.
Is it sustainable – there are some concerns here (1) the always-present crazy crowd may start a balancing loop (2) the volumes they produce/sell in might make a certain customer segment dislike it when they see many others wearing the same top (3) the competition has already started competing on price; these competitors do have muscle, and leeway to have a price war though I doubt if they can win it
