Primark expands brand strategy to enhance customer experience beyond traditional retail

Primark is investing in its “brand representation” as it aims to build sustainable growth into the future.

Chief executive George Weston spoke to investors as parent company Associated British Foods (ABF) unveiled its interim results. Weston mentioned that the clothing retailer had been putting in a significant amount of effort to enhance its brand.

He emphasized that there is a chance to move beyond offering great prices, products, and stores. The goal is to create a brand that truly reflects their identity, by bringing consistency and structure to their communication strategies.

Emphasizing Primark’s key traits, such as sustainability, "best prices on the high street", and quality, is important. A significant aspect of Primark’s "brand world" is its visual identity, which should be consistent across both digital and physical platforms.

Primark has launched its first ad for the German market to improve brand perception. Additionally, the company is confident that investing in marketing efforts can make a difference in the UK as well.

Despite having been here for a long time, there’s growth left for us in the UK.

George Weston, Associated British Foods

Weston mentioned that there are certain segments in all our markets who do not visit our stores frequently as we hope.

According to YouGov's BrandIndex, Primark, which will mark its 50th year on the UK high street this year, has over 95% awareness in the market. However, its leadership believes there is still potential for further growth.

Weston believes that there is still room for growth in the UK, despite our long presence here.

ABF's finance director, Eoin Tonge, emphasized that Primark's strategy is focused on growth rather than expanding margins. This includes investments in the brand and digital channels.

The digital transformation had an 'incremental' impact on the retail business during the 24 weeks ended 4 March 2024.

Paid online advertising will be a bigger part of Primark's strategy moving forward. This shift reflects changes in consumer shopping habits, with the company benefiting from the ability to learn from competitors' experiences in this area.

The same is true for Primark's click-and-collect approach. The retailer initially tested this service in 2022 with a focus on childrenswear, before expanding it further in the following year.

Click-and-collect is now offered in all Primark departments, with plans to expand this service to all stores in Great Britain. However, only a selected range of products will be available for this option.

According to the company, they have noticed that click-and-collect customers are purchasing more items than anticipated. Additionally, there has been an increase in customers making extra purchases in-store while picking up their orders.

Weston claimed that the incremental approach of offering extended choices beyond local stores satisfies both new and existing customers. He believes that the combination of digital tools and click-and-collect services creates a mutually beneficial flywheel effect.

In addition, Primark has implemented a digital stock checker on its website. Approximately 20% of website visitors are utilizing this tool, indicating that the digital presence of the business is effectively driving traffic to its physical stores.

Over the past few years, the business has been doing a lot of work behind the scenes, whether it’s in digital or brand, to set itself up for the investment it is now making, Tonge stated.

Editor's P/S:

Primark's commitment to investing in its brand and digital channels is a testament to its long-term growth strategy. By focusing on sustainability, affordability, and quality, the retailer aims to create a strong brand identity that resonates with customers. The launch of its first ad campaign in Germany and the expansion of click-and-collect services in the UK demonstrate Primark's efforts to enhance its brand perception and reach new audiences.

Furthermore, Primark's emphasis on digital transformation, including paid online advertising and a digital stock checker, reflects its understanding of changing consumer shopping habits. By leveraging digital channels, the retailer can drive traffic to its physical stores and provide a seamless omnichannel experience for its customers. The positive impact of click-and-collect on customer spending and in-store purchases highlights the potential of this service to enhance the overall shopping experience and drive growth for Primark.