Primark

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Primark Stores Ltd.
Native name Primark
Type Subsidiary
Industry Retail
Founded Dublin, Ireland (June 1969 (1969-06))
Headquarters Dublin, Ireland
Number of locations 257 Stores (2013)[1]
Area served Western Europe
Key people Arthur Ryan, Chairman
Paul Marchant, Chief Executive Officer
John Lyttle, Chief Operating Officer
Ben Mansfield, Sales Director
Breege O'Donoghue, HR, PR & Advertising Director
Aidan Shields, Chief Financial Officer
Products
  • Ladiesswear
  • Menswear
  • Childrenswear
  • Footwear
  • Accessories & Hosiery
  • Lingerie
  • Homeware
  • Cosmetics
Revenue £2,730m (Financial Year 2009/2010)
Employees 22,000
Parent Associated British Foods
Website primark.com
Primark store in Cambridge.
Primark on The Headrow in Leeds city centre, occupying the former Odeon cinema there.
Primark in the Former Lewis's Building in Manchester city centre, the largest store worldwide

Primark is an Irish clothing retailer, operating in Austria, Belgium, France, Germany, Ireland (38 stores branded as Penneys), Portugal, Spain, the Netherlands and the United Kingdom.[2] The company's main headquarters are in Dublin; they are a subsidiary of British food processing company ABF. Primark first opened in June 1969 in Mary Street (Dublin). It became apparent that more stores were required and another four were added to the chain.

Further expansion and success in Ireland dictated the move to the United Kingdom, when in 1971 it opened a large store in Belfast City Centre before opening four out of town stores in England in 1973. The first high-street stores were Derby and Bristol.

Market position

Primark sells clothes at the budget end of the market. Its main competition is that of other cut-price clothing retailers; such as supermarket lines.

Primark's products

All of the company's merchandise is made specifically for the company and as such Primark has its own brand names. Within both menswear and ladieswear there is one main brand name that supplies most of the fashion labels, which are added to by other suppliers.

Issues

Working practices

In 2006, Primark joined the Ethical Trading Initiative, a collaborative organization bringing together businesses, trades unions and NGOs to work on labour rights issues in their supply chains.[3] ETI members commit to working towards the implementation of a code of conduct based on the International Labour Organisation's core conventions.

In December 2008, the UK charity War on Want launched a new report, Fashion Victims II, that showed terms and conditions had not improved in Bangladeshi factories supplying Primark, two years after the charity first visited them.[4]

On 9 January 2009, a supplier was forced by ETI to remove its branding from Primark stores and websites following a BBC/The Observer investigation into the employment practices. The investigation alleged use of illegal immigrant labour which was paid less than the UK legal minimum wage.[5]

On 16 June 2011 the BBC Trust's Editorial Standards Committee (ESC) published its findings into a Panorama programme[6] 'Primark: On the Rack', broadcast in June 2008. This programme was an undercover investigative documentary examining poor working conditions in Indian factories supplying Primark. Although Primark subsequently stopped doing business with the Indian supplier, the ESC concluded that footage in the programme was 'more likely than not' to have been fabricated.[7] The ESC directed the BBC to make an on-air apology and to ensure that the programme was not repeated or sold to other broadcasters. Primark created a specific website to deal with the issues around the programme.[8]

Building collapse at Savar

On 24 April 2013, the eight-story Rana Plaza commercial building collapsed in Savar, a sub-district near Dhaka, the capital of Bangladesh. At least 1,127 people died and over 2,438 were injured.[9] The factory housed a number of separate garment factories employing around 5,000 people, several shops, and a bank[10] and manufactured apparel for brands including the Benetton Group, Joe Fresh,[11] The Children's Place, Primark, Monsoon, and DressBarn.[12][13] Primark paid $200 compensation and emergency aid to the victims of the collapse, a move which was welcomed by Oxfam,[14] and committed to review the structural integrity of buildings making its clothes.[15]

Of the 29 brands identified as having sourced products from the Rana Plaza factories, only 9 attended meetings held in November 2013 to agree a proposal on compensation to the victims. Several companies refused to sign including Walmart, Carrefour, Bonmarché, Mango, Auchan and Kik. The agreement was signed by Primark, Loblaw, Bonmarche and El Corte Ingles.[16]

Stores

Primark expanded rapidly in the UK in the mid-2000s. In 2005 they bought the Littlewoods chain for £409m,[17] retaining 40 of the 119 stores and selling the rest. They opened in the Meadowhall Centre in mid-2007.[18]

In May 2006, the first Primark store outside the UK and Ireland opened in Madrid, Spain. In December 2008, Primark opened its first stores in the Netherlands, followed in 2009 by its first stores in Portugal, Germany and Belgium. Primark opened its first store in Austria on 27 September 2012 in Innsbruck, this was followed by another store in Vienna which opened in October 2012.

The largest Primark store is located on Market Street, Manchester, England occupying 155,000 sq ft (14,400 m2) of retail space, spread over three floors. The Market Street store recently completed a full store refurbishment and extension to add an extra 50,000 sq ft (4,600 m2) of retail space to the ground and first floors.[19]

Country Number of Stores
Trading as of 16 December 2013
United Kingdom United Kingdom 161
Republic of Ireland Ireland 38
Spain Spain 35
Portugal Portugal 7
Germany Germany 10
Netherlands Netherlands 5
Austria Austria 2
France France 2
Belgium Belgium 1
Total 261

References

  1. "Penneys company history". Retrieved 12 December 2012. 
  2. http://www.primark.co.uk/page.aspx?pointerid=eb44df4565934edca627dac6ec12145a
  3. Primark joins Ethical Trading Initiative - Press Release - ETI
  4. http://www.waronwant.org/campaigns/supermarkets/fashion-victims/inform/16360-fashion-victims-ii
  5. McDougall, Dan (11 January 2009). "Primark in storm over conditions at UK supplier". The Guardian (London). Retrieved 22 May 2010. 
  6. http://www.bbc.co.uk/bbctrust/news/press_releases/june/panorama.shtml
  7. Revoir, Paul (17 June 2011). "Shamed BBC could lose prestigious TV award over ‘faked footage of child labour' in Primark Panorama expose". Daily Mail (London). 
  8. http://www.primarkresponse.com/panorama/
  9. Ahmed, Saeed; Lakhani, Leone (2013), Bangladesh building collapse: An end to recovery efforts, a promise of a new start, retrieved 16 December 2013 
  10. Zain Al-Mahmood, Syed (24 April 2013). "Matalan supplier among manufacturers in Bangladesh building collapse". The Guardian. Retrieved 21 October 2013. 
  11. 'Extreme Pricing' At What Cost? Retailer Joe Fresh Sends Reps To Bangladesh As Death Toll Rises - Forbes
  12. Nelson, Dean (24 April 2013). "Bangladesh building collapse kills at least 82 in Dhaka". The Daily Telegraph. Retrieved 24 April 2013. 
  13. Alam, Julhas (24 April 2013). "At least 87 dead in Bangladesh building collapse". USA Today. Retrieved 24 April 2013. 
  14. "Oxfam response to Primark's statement on compensation for people affected by the Bangladesh Savar building collapse - Oxfam International". Retrieved 8 May 2013. 
  15. Factory Building Collapse in Bangladesh Kills 149 | Digital Wires from ENR.com | News McGraw-Hill Construction
  16. Ovi, Ibrahim Hossain (2013), Buyers' compensation for Rana Plaza victims far from reality, retrieved 16 December 2013 
  17. http://www.guardian.co.uk/business/2005/aug/08/highstreetretailers.marksspencer?INTCMP=ILCNETTXT3487
  18. http://www.propertyweek.com/news/next-and-primark-to-anchor-meadowhall/3072706.article
  19. "What's Happening in Manchester City Centre - Manchester Fashion Network". Retrieved 23 April 2012. 

External links

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