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Primark enters online marketplace with Click & Collect trial

Primark enters online marketplace with Click & Collect trial

On this episode of Talking Shop, we are joined by Nikki Baird, Vice President of Strategy and Product at Aptos. Nikki has spent decades separating technology hype from real-world consumer behavior. Today, we delve into the emergence of the "dark funnel" and how LLMs like ChatGPT are disrupting traditional retail search pipelines, breaking retail media networks, and forcing retailers to their re-evaluate product landing page.

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Primark is set to launch a UK Click and Collect trial service on children’s products across 25 stores in the northwest, encompassing 2,000 options of clothing, accessories and lifestyle products.

Around 40% of these options will be exclusive to Click and Collect, and the service is reportedly expected to drive higher footfall and incremental sales in stores.

The announcement comes as Primark’s owner, Associated British Foods plc (ABF), reported a 32% surge in group sales year-on-year to £4.04bn for the 36 weeks to 28 May 2022 (Q3).

Particularly, Primark hailed an 81% jump in sales to £1.7bn as all stores were open during the period, compared to last year when the majority of stores were closed until the middle of April. Sales in Q3 were also 4% higher than the comparable pre-Covid period three years ago.

Overall, total UK sales were “well ahead” of last year with a 61% increase, and 2% ahead of pre-Covid levels three years ago. Destination city centre stores also improved with a marked return of tourism accompanied by more office working.

Meanwhile, Primark’s Q3 sales in Continental Europe were 106% ahead of last year and 7% above pre-Covid levels, with a 20% increase in retail selling space and like-for-like sales down 15%.

Total sales in the US in the quarter were also 34% ahead of pre-pandemic levels, with the benefit of new store openings.

Previously, Primark launched its new UK website in April, which has reportedly seen traffic up by around 60% as customers on average are viewing twice as many pages per session, and almost 15% of visitors to the site are using the new stock checker facility.

Looking ahead, ABF said Primark remains on track to deliver a full year adjusted operating profit margin of some 10%.

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