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Consumer confidence to determine Primark’s future performance: GlobalData

 
 

Arian Bassari, Consumer Analyst at GlobalData, although Primark can be confident that the good weather will encourage consumers to purchase items such as T-shirts and shorts – over the long-term it is likely that consumers will observe more caution despite Primark’s budget friendly offerings. A COVID-19 tracker compiled by leading data and analytics company shows 62 per cent respondents in the UK have stopped buying, or are buying significantly less, clothing since the outbreak of the COVID-19 pandemic. This can also be seen across a number of fast-moving consumer goods (FMCG) markets as well, with products seen as luxuries taking a hit as consumers reel in their surplus expenses.

Almost 64 per cent respondents said they have stopped visiting such outlets altogether and a further 18 per cent claimed they are visiting slightly or significantly less frequently. While Primark has the benefit of being a standalone store, there will continue to be apprehension regarding the safety of visiting shopping outlets.

Bassari views though Primark’s decision to reopen is based on an apparent strong demand from consumers, however, overall consumer confidence will ultimately determine how the company and other retailers on the high street perform in the next few months.

 
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