Primark

Trading as Penneys in Ireland

" Look Good Pay Less "

Background:

Primark is a retail group in the value sector and operates a total of 173 stores in Ireland , where it trades under the Penneys brand; Spain and the UK . Primark employs in excess of 25,000 people. In GB, in terms of market share, TNS ranks Primark as GB's second largest clothing retailer by volume and Verdict Research now places Primark as the leading retailer in value clothing. Primark was voted ‘Best Value High Street Fashion' by GMTV and ITV viewers.

Primark Stores Ltd., is a subsidiary of Associated British Foods. Associated British Foods is a diversified international food, ingredients and retail group with global sales of £6.8bn, and 85,000 employees in 43 countries.

In the financial year 2006/7, 32 new stores were opened and five smaller stores were closed to give 4.8 million sq ft of retail selling space. Highlights during the year included the opening of London 's Oxford Street store in April. This was extremely successful, selling one million items in its first ten days of trading, and attracting considerable media coverage. The 85,000 sq ft Liverpool store was opened in September and was greeted with a similar level of enthusiasm both by customers and media. The new store openings in 2006/7 also included Primark's second store in Spain . Since the year end, two additional stores have opened in Spain ; in Jerez and a further store in Madrid . Primark now has 25 stores trading from over 50,000 sq ft of which eight trade from over 70,000 sq ft.

Plans are currently in place to open eight stores in this financial year including Ealing and Basingstoke in the UK .

Primark is successful because it offers:

• Super-competitive prices (the result of technology, efficient distribution, supply and volume buying)

• Mainstream market product quality

• High Street locations

• Superior store fit

• Clear focus on the target market.

There are two distribution centres – a 650, 000 sq. ft. unit at Magna Park in Leicestershire, and a 200, 000 sq. ft unit at Naas.

HR:

Primark has invested in developing a corporate culture that is dynamic, resourceful and customer focused and that accurately reflects the product offering. As Primark prepares to open a new store in a new location, the HR team focuses on raising the profile and reputation of Primark as an attractive place to work. This is accomplished through targeting recruitment programmes to match local circumstances, building up links with local community groups, job centres, colleges and universities, as well as designing more flexible jobs to meet both the individual needs of employees and the efficient Primark operation. The selection process focuses on recruiting the best mix of applicants who can quickly adapt to a fast-moving, people-orientated fashion environment, quickly and effectively contribute to the business and show the potential for future development and promotion within the organisation. All new employees undergo a comprehensive induction and training programme prior to the store opening. This programme aims to build a positive, energetic, and enthusiastic store team who will perform to the high operating standards of Primark. The team spirit is stimulated, developed and enhanced through the input of specially selected, high-performing, key Primark staff from all levels, across all functions.

Ethical Trading Initiative:

Primark is a member of the ethical trading initiative. This is an alliance of companies, trade unions and non profit organisations that aims to promote respect for the rights of people in factories and farms worldwide. As a member of ETI, Primark has committed to monitoring and progressively improving working conditions in the factories that supply Primark's merchandise.

Energy:

Primark's energy consumption in Great Britain is sourced against the green power generated and sold into the grid by sister company, British Sugar.

Awards:

In November 2007, Primark was awarded ‘ Best New Store – Primark Oxford Street ' and ‘Value Retailer of the Year' in the Drapers Awards 2007. In October 2007, in the Retail Interior Awards 2007, Primark received three awards for the Primark Oxford Street store -
‘ Fashion Retail Interior of the Year' , ‘Shopfitting Excellence Award' and ‘Best UK Interior Award' . In September 2007, Primark received awards for ‘ Value for Money' and ‘ Casual Clothes' in the Prima Fashion High Street Awards 2007. In July 2007, Primark was awarded ‘Shop Agents Society – Town Centre Retail Deal of the Year' at the Retail & Leisure Property Awards 2007 . Primark received the ‘Best Value' Award in the 2007 LK Today High Street Fashion Awards in May 2007.

Primark Value Proposition:

Primark targets young, fashion-conscious under 35's, offering them high quality, fashion basics at value for money prices. Almost half of sales are in Womenswear. A quarter of sales is dedicated to Menswear and Childrenswear , with other items constituting the remaining sales. Buying and Merchandising teams in Reading and Dublin travel internationally to source and buy up-to-the-minute fashion basics that best reflect each season's key fashion trends. Primark's offer to the customer is one of high-quality merchandise, at value for money, backed by Primark's service promise. Primark prides itself on its loyal customer base.

A strong consumer proposition has been developed for the Primark brand and embodied in the line “Look Good, Pay Less” which communicates Primark's value-based offering in a precise manner, to its core target audience. The purpose of the advertising in the first

instance is to support this strong value proposition and secondly to tailor the media solution to the store. Communication models are created and the imagery of the advertising is young, modern and dynamic to reflect the core target audience. A combination of media is used to create, impact upon and tightly target new customers.