Primark went from a loss to a profit of CZK 80.7 million in the Czech Republic

by   CIJ News iDesk III
2023-09-21   11:14

Irish budget fashion chain Primark has posted a net profit of approximately CZK 80.7 million in the Czech Republic for the financial year ending August 31, 2022. The company has thus emerged from a loss of around CZK 68.7 million in the previous financial year 2020/2021 due to the covid-19 pandemic. This follows from the company's financial statements published in the Collection of Deeds. Primark's revenue rose from CZK 254.3 million to CZK 1.02 billion. Primark opened its first store in the Czech Republic in June 2021 in Prague and another one in Brno last September.

The chain does not plan to open a new store in the Czech Republic in the near future, according to its annual report. In the 2021/2022 financial year, the company opened 10 more stores worldwide, bringing its total number of stores to 408. Last year, the chain entered its 15th market, Romania, according to information on Primark's website.

Primark is part of the multinational Associated British Foods group, which, in addition to retailing, is also involved in food processing. Last year, the group achieved a turnover of 17 billion pounds (about 479.2 billion kronor), up from 13.9 billion pounds (about 391.8 billion kronor) a year earlier. Some 132,000 people work for the group in 53 countries.

The number of employees at the Czech branch of the Primark chain rose from 271 to 314 in the last financial year. The company spent about CZK 101.8 million on personnel costs, i.e. wages, social security, health insurance and employee benefits, up by about CZK 51.7 million year-on-year. Globally, the chain employs more than 70,000 people, according to the financial statements.

Cheap fashion in the Czech Republic is also offered by the Polish offprice chain HalfPrice, which buys branded goods directly from manufacturers and sells them at lower prices. For the financial year from February 2022 to January 2023, the company posted sales of CZK 172.3m in the Czech Republic, up by about CZK 128.8m year-on-year. Today, the HalfPrice chain will open a new store in the Diamant building on Wenceslas Square in Prague. It will be the chain's largest store in Central Europe and its sixth in the Czech Republic, according to sales director Joanna Czyžewská.

Primark is very popular with Czech consumers. Before the pandemic, buses from several cities, such as Brno and Hradec Králové, used to go shopping in the nearest foreign stores. People especially appreciate the favourable prices of goods. The company says it achieves these through a different strategy than other clothing chains. "We cut costs by saving on small things, such as hangers or price tags," said Maciej Podwojski, regional manager for Poland, Slovenia and the Czech Republic.

Source: Primark and CTK