Primark – Do They Franchise?

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Primark – Do They Franchise?

For many consumers, Primark is irresistible. The clothes mirror the latest trends featured in fashion magazines at a fraction of the cost of other high street stores. This has resulted in a culture of disposable fashion. Shoppers can afford to buy the clothing of the moment, wear it a few times and then discard it, ready for the next fashion trend.

Primark opened its first store in Dublin in 1969 under the name Penneys. Following its success in Ireland, the brand opened its first store in the UK in Derby back in 1973. However, due to another company called J.C. Penney owning the rights to the name outside of Ireland, the Primark brand was born for use in the UK and Europe.

Primark now has more than 350 stores worldwide and is continuing to grow. The retail giant began its rapid expansion in the UK throughout the 2000s. In 2005, Primark’s owners, AB Foods, bought the Littlewoods retail stores for £409 million, keeping 40 of the 119 stores and selling the remainder.

In May 2006, the first Primark store to be opened outside of the UK and Ireland was launched in Spain. There are now stores in Germany, Franchise, Portugal, the Netherlands, the US, Belgium, Austria and Italy.

Primark is continuing to grow and expand across Europe and beyond, thanks to its diverse product range. Stocking everything from beauty products to clothing for all the family, this is a value brand that is loved by the young and old alike.

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Primark’s Performance

Primark is profitable because of the large volume of products that it sells each day. Trends are always changing and so customers are keen to get their fix of the latest global styles. Primark operates a budget-focused business model to keep up with what the consumers want. In the six months leading up to March this year, Primark’s profits increased by 25 percent to reach an impressive £426 billion. At the same time, sales rose by four percent to reach £3.6 billion. For this reason, it’s hardly surprising that some retail experts are predicting that Primark might overtake Next as the largest British clothes retailer following Marks & Spencer.

Also, affordable prices, fast fashion and a new make-up range have helped Primark to perform better than their rivals. This performance is even more impressive as Primark doesn’t sell online, which is the source of most sales growth for other clothing retailers.

Primark uses social media heavily to tempt shoppers into stores. The brand has 7.3 million followers, with Instagram being the most popular platform used to interact with its audience. The number of Primark’s social media fans is growing at a rapid pace as young people increasingly use their mobile phones to browse fashions before hitting the shops.

And with Next, Marks & Spencer and Debenhams all closing stores, Primark is continuing to grow both in the UK and overseas. Being able to respond quickly to consumer demand and keeping their prices steady has made Primark a force to be reckoned with.

Primark Strives for Gender Equality

In today’s social and political climate and with the rise of feminism, there is an increased emphasis on women in the workplace and encouraging gender equality. In recent years, Primark’s parent company, Associated British Foods (ABF) has been praised for doing its bit for gender equality in its leadership team. This is demonstrated by the fact that it has recently been recognised as one of the top ten most improved FTSE 100 businesses in relation to how many women are on the Board of Directors.

In 2010, the retail giant had an all-male board but, by 2014, it had taken on two more women, which meant that 22 percent of the leadership team was female. Although this is a definitely a move in the right direction, there are still just two women on the board today - but it is working hard to change this.

Who is the CEO of Primark?

Despite Primark being in business for half a century, there have only ever been two CEOs. Firstly, there’s Arthur Ryan, who founded Penneys in the sixties and has been in control since the very first shop opened in Dublin. He passed his title of CEO to Paul Marchant in 2009 who, after overseeing the business for a decade, has increased its profitability and positively impacted the brand as a whole. Primark now as a secure place in an overpopulated and competitive retail market.

Prior to becoming CEO, Marchant acted as the COO of New Look Retail Group. He also has a wealth of experience behind him, for example as the Trading Director for Clothing at Debenhams. During his stint at New Look, he watched Primark increase its nationwide presence as more and more shops were popping up around the UK. Eventually, in 2009, he became Primark’s COO.

Skip to a few months later and Marchant was the CEO, as Ryan became the Chair of the company. Before this big change in the company, they both took time to carefully consider how the change up would influence the growth and expansion of the brand. During his new role of CEO, Ryan helped support Marchant and made sure that he felt comfortable and confident in the position.

Is Primark a franchise?

No. There has never been the opportunity to invest in a Primark franchise, despite a recent scam attempting to fool aspiring entrepreneurs into thinking there is. Primark has responded by putting a message on their website stating that a third party (with no affiliation to Primark) has been offering to sell franchises of the Primark brand. They warned that this was a scam, as Primark owns and operates all of its retail stores and, therefore, there are no Primark franchise investment opportunities.

Primark Franchise Cost

As you can’t buy a Primark franchise, there is no way to estimate what the cost would be if one did exist. However, other retail store franchises are seeking franchisees at the moment to suit all budgets. Here are just two of the opportunities that you may want to consider:

Noa Noa

Noa Noa is a Danish-inspired fashion franchise that appeals to a predominately female market and specialises in modern, bohemian styles that communicate confidence and an appreciation of self-expression. The brand operates in 20 countries, boasts more than 60 unique concept stores and has a presence in over 400 multi-brand stores.

Becoming a Noa Noa franchisee requires between £50,000 and £100,000 of investment. This grants you access to the entire Noa Noa franchise package and the right to operate under the brand name, as well as to use its trademarks.

You’ll also receive a considerable amount of support to get your new business off the ground. You’ll attend training in purchasing analysis and planning, marketing, visual merchandising and how you should recruit and train your employees. A designer and visual merchandiser will also visit your store before your launch to ensure that it looks perfect for your opening day.

If you’ve got an eye for design and would like to help women to find their own style, then a Noa Noa franchise could be just the opportunity you’ve been looking for.

To be part of this exciting opportunity, you will need to make a minimum investment of £40,000.

Karen Millen

One of the most prominent brands in women’s luxury clothing is Karen Millen. Giving its customers the chance to own high-end fashion pieces for high street prices, this is a brand that is globally renowned for quality.

If you choose to invest in a Karen Millen franchise, you’ll become one of over 400 stores and concessions located in 63 countries across six continents. You’ll get to attend a unique training programme, which covers business and sales techniques as well as other skills needed to run a profitable fashion franchise.

Due to the reputation that Karen Millen has built up, it’s looking to partner with talented individuals who have experience in retail selling and a good background in management.

Unfortunately, Karen Millen isn’t looking for franchisees with us at the moment but check back soon in case the opportunity rises again. If this is the case, you’ll also need to have sufficient monetary funds to contribute the minimum investment of £350,000.

Similar Opportunities

If you’re eager to be part of the fashion industry but want to take a more unique, unconventional approach, why not start a clothes alterations franchise?

Zip Yard

When you invest in a Zip Yard franchise, you can open your own alterations boutique in your local area. The clothing franchise strives to have the quickest turnaround times as possible, so whether it’s a sleeve or a hem adjustment, customers can expect to get their clothes returned within 48 hours. Regardless of the size of the alteration, Zip Yard is an expert in the field and the highly trained staff can take on any task.

Franchisees can look forward to having access to a comprehensive training programme that will cover everything needed to be a successful business owner. There is also ongoing support in areas such as shop fitting, marketing, merchandising, equipment, furniture and help with recruitment.

Focusing on the latter, the company will assist you in choosing an impressive team of alterations professionals so you can provide exceptional service in record time.

The minimum investment is £38,500.

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