Primark announces 17% profits rise
As we look at the fall of 34% in the profits of Marks & Spencer it may look strange to see Primark announcing a 17% increase in profits for the same period. However when you check out the underlying quality and target market of the two companies that may be some obvious reasons as to the change in trading.
Primark has always targeted the lower end of the market with goods sold for as little as a few pounds against the higher quality higher cost end of the market which Marks & Spencer has serviced for so many years. As the economy continues to suffer it was inevitable that the consumer would downgrade spending to align with income which has seen an increase in lower ticket priced clothing and other goods.
However in the longer term the likes of Primark may struggle to retain their lower cost prices as and when the Far East markets, on which they so depend, recover and costs start to edge higher. However in the meantime this is a perfect opportunity for the likes of Primark to make hay while the sun shines.
It will be interesting to see the divergences in performance between the lower end and the higher end of the UK retail market.
Share this..
Related stories
Is the EU pushing too hard for an EU regulator?
Despite the fact that the European Union has been pushing for further central power for some time, the potential emergence of a "super regulator" within the European Union is something of a fairly new phenomenon. It would appear to many, on the outside at least, that the EU is literally taking advantage of the credit crunch and the economic downturn by introducing the idea of a "super regulator".<...
Read MoreNo Christmas presents from the credit card companies!
The revelation that some credit card companies are pushing their rates higher, some by as much as 7%, is the worst news that the UK retail sector and UK consumers could have hoped for. The recent move by Capital One has seen rates rise as high as almost 40% which will be the level of interest attached to Christmas and January buys unless customers of the credit card company are unable to pay off t...
Read MoreIs the era of low cost credit over?
With UK base rates currently stuck at 0.5% the cost of debt in the UK has never been lower. However, what has changed is the criteria needed to qualify for the relatively low cost credit offers available which has seen many people locked into their long-term higher rate arrangements. But will we see low-cost credit return in the future?
As we have mentioned on numerous occasions, th...
Renewable Energy Will Cost UK Taxpayers
As the government stepped forward with plans for a £100 billion green energy revolution in the UK there were hopes that finally the rising cost of living would be tackled by the authorities. Surely the green revolution should see the cost of living fall? Surely this would inject some much needed competition into the energy markets with a new alternative? If only things were that simple.............
Read MoreRyanair responds to EU directive regarding hidden charges
As we covered in one of our recent posts, Ryanair was looking at potential fines and penalties from the EU with regards to so-called hidden charges on the company's website. However, after a discussion with the UK Office of Fair Trading (OFT) Ryanair has today agreed to make its charging structure more transparent and easier to understand.
The issue recently came to a head after a f...