Primark 'regrets' raising prices as it battles with rising costs

Image source, Press Association

The fashion firm battles rising costs and an executive has told the BBC he regrets raising prices.

John Bason, finance director for the parent company, warned that some people might shop with them less as budgets are squeezed by the higher cost of living.

Some prices are going to go up from this autumn.

Mr Bason said the company is committed to affordability for everyone.

Firms in the UK have been passing on higher shipping and oil costs to their customers.

High Street chains are raising prices.

The company had promised not to raise prices.

ABF recently announced that it will implementselective price increases across some of the autumn and winter stock of Primark as it tackles spiralling costs.

Mr Bason said that he regretted that some prices had to be raised.

Inflation is at a 40-year-high.

The global economy rebounded, the supply chain was disrupted, and the war in Ukraine has had an impact on prices.

Image source, ABF

Mr Bason said that the economic environment and inflation have been changed by the invasion of Ukraine by Russia.

We have worked hard to ensure that our prices stay where they are, but at some point you have to do something about the inflationary pressures.

Mr Bason wouldn't say how much prices will go up.

He said that Primark was still the best value clothing retailer in the UK.

In an environment where other retailers were raising prices, the gap could be maintained.

The rising costs of food, fuel and energy are a huge problem for high street retailers according to Jonathan de Mello.

The cost of living crisis has achieved the dubious accolade of replacing Covid as the main concern for consumers currently, and as real incomes start to fall and prices rise further, retailers face yet another major headwind.

The price increases will impact less affluent consumers buying from Primark, who have already seen real incomes fall due to a combination of significantly higher energy prices and food price inflation.

Image source, PA Media

Mr Bason said that there are some consumers who would normally be spending more and that there would be some consumers who would shop less with us.

Mr Bason said that Primark is not seeing any major impact from the tighter budgets.

The footfall and the like-for-like sales that we are seeing in the UK have been on a strongly improving trend this year and that really is about recovery from the Pandemic.

People are travelling, people are going back to the office, and people are socializing. We are seeing a big increase in sales related to those activities.

Most High Street retailers do not sell online.

Customers can now browse the full collection on the group's website, so they can check availability before visiting the stores.

Mr Weston is confident that the high street has a future.

Even though we were closed for six months for the two main years of the Pandemic, our customers have come back to us. He said that it was very striking.

The demise of the high street is overstated, but it is changing. There is no doubt over it.

Mr Bason is confident that fast fashion can be green, with the chain announcing new sustainable pledges last year.

The pledges included a commitment to make Primark's clothes using recycled or more sustainable materials.

Mr Bason said that the soaring energy prices could act as a catalyst to greater energy efficiency as suppliers look to reduce their costs.