Missing the (Pri)mark
In so many instances COVID-19 is going to accelerate existing trends. This global pause will almost certainly result in changes of behaviour with retail brands probably being the most visible and dramatic arena for change.
Retail probably falls into 3 groups;
those that were already embracing change around channel, sustainability, ethics, value
those that have used COVID-19 to pivot quickly doing imaginative things to assist in the effort (Barbour and Burberry are good examples) which will be remembered and rewarded along with working on new few retail strategies
those that think it will be ‘business as usual’
Yesterday it felt very much like Primark was ‘betting the shop’ on being firmly in that 3rd category. Their finance chief was heavily quoted as saying;
”We’ll open with the inventory appropriate to the region and people are going to go ‘wow, good old Primark is back’. We want to make a splash and we’ve got the wherewithal to do it, we’ll be fresh and relevant for whatever season we open in.”
It’s worth noting that Primark have made no sales since COVID-19 restrictions were put in place because they are absolutely wedded to large physical retail footprints.
They are the hypermarket of cheap clothing dependent on high volume footfall with a consumer who will travel miles to shop there. In places like London a large share of custom comes from overseas visitors who buy cheap suitcases at Primark to fill with everything from baby wear to bikinis.
Ongoing social distancing, travel restrictions and less disposable income are going to reduce that walk-in traffic to very low levels - there will much fewer people saying “good old Primark is back”.
So where is the innovation ? I can understand (almost) why they might shun full-throated eCommerce but what about ‘click-and-collect’ bearing in mind they have a catalogue website where you can see but not buy ? Their stores are large with a lot of inventory on the floor. They would have none of the costs associated with shipping or returns.
Click-and-collect allows people to return to shopping in a structured way. When ‘lockdowns’ are over people are not going to flood the high street and malls - let’s be honest they were not doing that before COVID-19 - because we will still be living with the virus in the community.
These last weeks will shape the future. In many households there will have been a realisation about how much ‘stuff’ we have, the bad retail choices we have made and what do we want to spend our money on when this is over. I say all of this as someone who has a collection of Primark ‘disposable’ sweaters. Why ? When I could probably buy a pricier but much longer lasting brand.
Less customers, changing tastes and values, a different approach to retail. Primark really need to rethink their approach. Fast.
Mark Izatt is a brand consultant living in London and founder of Mission Critical, a highly focused and curated weekly briefing for time poor and information hungry decision makers and THE FIRST, a monthly briefing containing 31 inspirational insights. Mission Critical is a digital product delivered via his Estonian Consultancy business.
You can email Mark here.
