Primark boss: London shops poised to boom once lockdown ends

PRIMARK is poised for a post pandemic profit boom as shoppers, tourists, and office workers return to high streets, says boss John Bason.

He was talking as parent company ABF said it has lost £1.1 billion of sales in lockdown, with more to follow, perhaps taking the total hit to £1.5 billion.

ABF finance director Bason was upbeat. He told the Standard: “The numbers are saying that the worst is behind us. We are opening in the Spring and want to make sure we are as ready as we can be.”

While other retailers close their doors, Primark insists it is committed to the high street and Oxford Street in particular.

“I’ll be amazed if by the summer we aren’t in the middle of a shopping boom. This is not a permanent condition we have got here,” he said. “People miss us when we are closed. I think there is very broad recognition that the health of the high street is key to rebuilding the wider economy.”

He pointed to booming sales in post lockdown Austria and said Primark is now profitable in the US, making the business one of the few UK retailers to make a success of the American market. Most UK retailers that have tried to crack America, notably Tesco, have failed.

Primark, famously not online despite criticism from retail analysts, said it is not looking to expand floor space. But neither will it cut back.

“People will come back in to the centre of London, probably in the summer. Tourism will take longer to come back. The high street has gone through a change, but when our stores re-open they will be busy,” said Bason.

He insists there will not be a pivot to online.

Chris Daly, CEO at the Chartered Institute of Marketing said: “Three lockdowns later, and Primark remains at a huge disadvantage due to its lack of an online sales operation. Today’s update reflects the catastrophic trading conditions Primark has suffered over the last year, unable to make sales while its competitors such as ASOS and Boohoo are  cashing in on the surge in online shopping. “But the brand’s steadfastness of purpose ought to be admired, and with the Prime Minister’s roadmap out of lockdown now clearly defined, the retailers’ bricks and mortar presence will be critical in restoring footfall to Britain’s highstreets.”

ABF shares rose 9p to 2446p.