Primark has been “squarely in the path of this pandemic” says ceo; commits to paying extra £370m to suppliers for outstanding stock.
The ceo of Primark’s parent company, Associated British Foods, has today revealed that the fast fashion retailer has gone from making £650m in sales a month to nothing following the closure of its stores due to the coronavirus pandemic.
George Weston said in a personal message that Primark “has been squarely in the path of this pandemic” and that 68,000 of its people were receiving furlough payments from governments across Europe “without which we would have been forced to make most redundant”.
“From making sales of £650m each month, since the last of our stores closed on 22 March, we have sold nothing. One of the world’s great clothing retailers is entirely shut.”
George went on to say that Primark has paid for in full and taken delivery of “very large amounts of completed stock which we can’t sell for now and we have established a fund that will ensure everyone in a vulnerable country who worked on a Primark garment, whether completed or not, is paid for that work. And we are supporting suppliers with commitments to buy garments that are as yet unfinished. But not until shops reopen and we can place new orders, will the economic hardship that COVID-19 has caused to all those in our supply chain begin to reduce.”
Stores across the UK, US and continental Europe would not be reopened until the disease has been suppressed.
“When are we are allowed to reopen we must make our Primark stores safe for our staff and our customers,” the message continued, “even if that means ensuring there are fewer people shopping at any one time and so accepting lower sales at least until the remaining risk is minimal. In time we can rebuild the profits. We can’t replace the people we lose.”
The retailer hopes to start placing orders for autumn/winter stock once there is further information about when its stores can reopen, reported Sky News.
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