Primark settled in the Czech Republic. He is already looking for people for another branch, but prices will go up

The chain signed a lease agreement with the Olympia shopping center in Brno in 2020, before the official entry into the Czech market.

“The addition of an internationally recognized retailer to the shopping center’s portfolio will significantly contribute to the current range of brands and services offered at Olympia Brno,” said Olympia manager Jan Pazour two years ago. The Brno store is to spread over 3,600 square meters, offering women’s, men’s and children’s fashion, including footwear, accessories, underwear and household goods.

According to Aktuálně.cz, Primark is already asking staff for Brno and its surroundings on the job portals. These are, for example, the positions of team manager, department head, his deputy or salespeople.

Last June, the chain opened its first store on Prague’s Wenceslas Square, with three floors with an area of ​​4,600 square meters. The opening among the people aroused a considerable response, they were willing to wait for hours to enter the store in hot weather. The queues then formed before the primary for the next few days.

According to marketing specialists contacted by Aktuálně.cz, such interest was caused by the end of the coronavirus pandemic, when people were more likely to seek experiences, and by the fact that Primark had built an almost cult position among fast and cheap fashion hunters.

Regional Chief Mullen for Primark noted that last year, mainly licensed clothing lines such as Harry Potter, NBA and Disney characters were selling well. “Denim clothing for women is also popular. With the relaxation of measures, our customers are also looking for formal clothes such as blouses and dresses,” he added.

For a shopping trip

According to Jan Kotrbáček, a partner and head of the retail space rental team at Cushman & Wakefield, many visitors to Prague still include purchasing in the chain in their program. “Some even come for him. The business also benefits from foreign tourists due to its central location,” he says.

According to him, this confirmed the expected impact of the opening of Primark on the entire location in the center of the Czech capital.

“Primark enriched the local offer and made the surrounding area more attractive, thanks to which the upper part of Wenceslas Square has become a destination that attracts visitors. This is confirmed by data from other merchants or operators of cafes and restaurants in the area. “In response to these changes, the interest of retailers in the retail space in the locality has increased, and other brands, such as Tezenis, have opened their stores there,” adds Kotrbáček.

Another brand store in the region is to be established as part of the expansion of the Eurovea shopping center in Bratislava in the spring of 2023.

There is interest in cheap fashion

Half-competitive trade, which also focuses on discounted goods, has performed similarly well on the Czech market. On the contrary, several fashion brands have had to leave the Czech market in recent years. The Orsay fashion chain is currently withdrawing from the Czech Republic, the French retailers Promod and Camaieu have also closed their stores, and the British Next chain has also withdrawn from the market.

However, Primark did not have a problem-free business during the coronavirus pandemic, mainly because, unlike the competition, it does not have an e-shop.

Now his business is complicated by rising prices across Europe. In April, Associated British Foods, the parent company of Primark, announcedthat due to inflationary pressures will have to raise prices for some of its products from the collection for fall and winter. The company said inflationary pressures are now so high that it is unable to offset them with savings. However, she noted that she intends to maintain her trump card – ie affordability – for customers.

According to economists, clothing retailers are also compensating for covid losses by raising prices. Specifically, clothing and footwear have risen significantly in the Czech Republic compared to last year – according to statisticians, Czechs now pay an average of 23 percent more for clothing only last year, which, according to analysts, is unique within the EU.

According to the financial statements, Primark Prodejny reported a loss of CZK 39.9 million on the domestic market in the period from 1 January 2020 to 31 August last year and reported revenues of CZK 254.3 million.

Video: “I’m lifting. I want to compare it with Dresden,” people confided at the opening of the Primark store in Prague last year.