Primark

Primark; London, Oxford Street 

So I trooped down to Primark on a Wednesday morning. And amid talk about the doom and gloom of a worsening recession, Primark was packed full of eager shoppers pulling trolleys brimming with a heap of clothes and who were still (almost uncontrollably) adding to the pile. What is going on?

So this is what is going on: I bought three pairs of shoes for £17. WHAT? Yes, you heard me. Primark just manages to offer such "dirt cheap" prices. 

But how is this possible? From a little research, it seems to come down to: 1. Economies of scale - the volume of turnover simply enables Primark to negotiate lower prices from its suppliers and manufacturers in Asia and Eastern Europe. 

2. Low overheads - there is really nothing much to say about the Primark shopping experience. It is a grab-what-you-can-find marketplace with no service on the shop floor apart from at the tills or when you are asked to move aside as the shelves are loaded with more goods. Also, apart from the Oxford Street branch, most other Primark stores are in non-prime locations. 

3. No advertising - none whatsoever apart from relying on shoppers with big bags spreading the word and clever visual merchandising (with their best bargains placed closest to the store entrances). 

Surprisingly, Primark is owned by Associated British Foods, the company behind Ovaltine and Twinnings Tea. Further research revealed that ABF is controlled by Canada's wealthy Weston family who incidentally also acquired Selfridges in 2003. Initially started as Penny's in Dublin, Primark is fast expanding its footprint around Europe. 

So what about this Primark effect or syndrome that the fashion industry is abuzz about? Well, I think it is here to stay. Beyond the fact that this recession is not going away anytime soon, I think it has prompted a permanent shift in the consumer behaviour. More than ever, shoppers are questioning why they are paying so much for clothes which has recently prompted online sites and even luxury brands to be more transparent about pricing. And increasingly, consumers are looking at designer trends and thinking they can get it for a quarter of the price on high street. Not sure how the fashion industry is taking this but as consumers, we are loving this. And you know what, the workmanship on those shoes I bought may not be great and the designs not ingenious, but they are incredibly comfortable and for 6 quid a pair, I'm lovin' it.