Primark has reported a 0.9% drop in like-for-like sales for the fourth quarter of this year, a downturn linked to both adverse weather conditions and civil unrest in key markets in the UK.
While the brand continues to expand its store network, it remains vulnerable due to its limited online presence, highlighting ongoing challenges in a rapidly changing retail landscape.
Adverse weather hits high street footfall
The UK and Ireland experienced an unusually wet mid-year period, which dampened consumer appetite for summer-based fashion.
As Susannah Streeter, head of money and markets at Hargreaves Lansdown, explains: “The rain significantly disrupted play, with summer stock much harder to shift. A new pair of sandals or bikini were hardly top of shopping lists for many amid the drizzle and despair.”
Weeks of poor weather not only kerbed consumer demand for seasonal items but also kept many would-be shoppers away from the high street.
Despite these challenges, Primark's UK revenue rose by 4%, bolstered by store openings and strategic relocations to higher-traffic areas.
"Management have had an eagle eye on seizing new opportunities," Streeter adds, noting that these moves provided a boost amid an otherwise challenging period.
Riots compound sales decline
Adding to the retailer’s woes, civil unrest across multiple UK cities severely impacted high street footfall.
Protests and riots, sparked by a tragic event in Southport, further deterred shoppers from visiting physical stores.
According to reports, violent scenes and demonstrations affected several key urban centres, exacerbating the already-low footfall caused by the weather.
As Streeter notes: “Primark has weathered the storm of an unfortunate combination of rain and riots, but its bricks-and-mortar-focused model shows it’s susceptible to lower sales if high street footfall falls.”
The riots and adverse weather created a perfect storm that hit Primark’s traditionally strong performance, with store sales lagging behind expectations.
Online weakness exposes vulnerability
While Primark’s continued expansion efforts and physical store strategy have yielded some positive results, its limited online presence remains a key weakness.
Streeter highlights this vulnerability: “When storms, demonstrations, and riots hit footfall, shoppers can order online deliveries from competitors like Next and Marks and Spencer, and Primark doesn’t have that safety valve to rely on.”
Primark’s reliance on foot traffic puts it at a disadvantage, particularly in moments of external disruption. Unlike many of its competitors, Primark has no full e-commerce offering and instead relies on its click-and-collect service and social media channels.
As Streeter emphasises: “Primark will need to show that it’s a reliable shop for all seasons, with ranges ready to adapt to unpredictable weather patterns,” while also strengthening its digital presence to compete effectively.
Despite the challenges, Primark is looking towards future growth, with plans to continue expanding its store footprint and improving customer experience.
However, the pressure to enhance its digital offering remains, especially as the retail environment becomes increasingly reliant on a multichannel approach.
