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  1. ITV Report

How Primark is bucking the high street decline

Primark continues to thrive on the high street while competitors falter. Credit: PA

The rapid expansion of Primark shows very little sign of slowing down as its profits surged by 25% this year, continuing to defy the gloom affecting many other high street retailers.

The fashion retailer said its increased range of clothing, footwear and accessories in the UK market helped it avoid the wider high street slump felt by other companies.

But how is the discounted retailer bucking the trend while its high street competitors scramble to stay alive?

  • ITV News Business and Economics Editor Joel Hills explains why Primark is still booming and shows no signs of stopping

Many retailers are closing down stores, however just a few weeks ago, Primark opened its biggest store in the world in Birmingham - spanning across a staggering 160,100 square feet of retail space and five floors.

The fashion giant is the third most popular clothing retailer in the UK after Marks and Spencer and Next.

189
Primark stores in the UK and the retailer is expanding into the US

ITV News' Business and Economics Editor Joel Hills said Primark's success is not complicated.

"It's a discount retailer, it keeps its costs and its prices low, but it's got profit margins which its rivals online and off would kill for," he added.

Primark's success still continues to grow despite having a small online presence, with the firm not selling clothes or items online through e-commerce like its many competitors.

£3.6bn
Cost in Primark's growing sales, according to the Associated British Foods (ABF)

However the retailer does let prospective shoppers view their products online, as its range is constantly being kept up-to-date with the latest trends.

But the chain has repeatedly ruled out moving into e-commerce, despite around a quarter of all fashion shopping taking place online.

The world's biggest Primark opened in Birmingham this month. Credit: PA

Primark's strong performance in an otherwise volatile market has helped ABF record a 2% rise in turnover to £7.5 billion.

£426m
Operating profits from Primark in the first six months to March 2.

ABF chief executive George Weston said: "Primark delivered excellent profit growth, driven by further development of our customer experience and selling space expansion."