Shop directors are given quite a lot of autonomy at Primark, says sales director Olivier Crépin. That entrepreneurship contributes to the success of the retailer, which offers its people plenty of opportunities for advancement.
‘Primark takes good care of its people’
The conversation takes place in the wings of the Primark outlet on rue Neuve in Brussels: the retailer does not have a real head office, as the company pays close attention to costs. ‘I work from a different shop every day,’ says Frenchman Olivier Crépin, who has been working in Belgium for a year and a half now and has been allowed to call himself Head of Sales since the beginning of July.
After a 10-year career at Decathlon, he joined Primark in 2010, first as shop director in Murcia, Spain, and later also in France. ‘Primark takes good care of its people. Those who want to grow here get opportunities. Eighteen months ago, I was asked to join the Belgian adventure. I’m from the north of France myself, so I knew Belgium a bit, but once you work here, you notice that it’s a complex country, very interesting.’
Purchasing power remains important
Today Primark has eight shops here, nicely distributed across the territory: three in Wallonia (Mons, Charleroi and Liège), three in Flanders (Antwerp, Ghent and Hasselt) and two in Brussels (Chaussée d’Ixelles en Rue Neuve). Concrete further expansion plans the chain does not nurture. ‘The aim is to satisfy our customers in the existing shops. Each shop still has growth potential.’ Although the top executive may still see opportunities in the periphery, as all current locations are centre shops. ‘Belgians still shop a lot in city centres, more so than in France.’
Primark is doing fine, but quite a few fashion chains are in trouble. What is going on in the fashion market? ‘I don’t know what’s happening with the others, but I can see how things are going with us. I know you have to adapt. Purchasing power is important for our customers, especially when they have small children, who grow out of their clothes within the year. Two years ago, Primark decided to freeze prices for the back to school period. Last year, we even dropped prices on two hundred products. This year we are freezing prices again at last year’s level. These are strong signals. We have great products, our clientele knows they find the best value for money with us.’
Less formal, more casual
Buying behaviour is changing, and Primark is changing accordingly, says Crépin. ‘Fifteen years ago, we still had a lot of suits, ties and shirts, for example. We still have some, but we have reduced that range. The general trend is less formal, more casual. And we have added new ranges, such as beauty, a market that is growing year on year. Accessories are also doing well. Interior decoration takes up to 10 per cent of the shop floor space in the larger shops.’
Primark is also trying to adapt to changing times in terms of sustainability. ‘Fifteen years ago, customers were also looking for small prices and good quality, but now they are increasingly demanding sustainability as well. We have been working on that for more than a decade, with our Sustainable Cotton programme for example. Two years ago, we announced the Primark Cares programme, based on three pillars: extending the life of our products, caring for the planet, and helping our people – besides our own employees, also our suppliers and partners.’
Cutting costs at all levels
Primark Cares not only aims to halve its emissions by 2030, but also to stop using single-use plastic. Products will be designed to be recyclable. ‘We want to take responsibility, be good citizens. If big brands like Primark don’t engage, we’re not going to change the world. 150 people at Primark carry out audits in the 10 countries where we produce over 90% of our collections, to check that our suppliers respect our charters.’
But how is that possible, offering sustainable fashion at the lowest price? ‘Thanks to our unique business model. We order our collections more than a year in advance and we only have two collections a year. We schedule production in off-peak periods for our suppliers. Fifty per cent of our offerings are basic pieces. We also try to cut costs from all angles. Everywhere, our products arrive by boat, never by plane. This is not only cheaper, it also allows us to reduce our CO2 emissions. We don’t play music in the shops, we don’t invest in advertising. Our margins may be very small, but that is offset by huge volumes.’
Testing click & collect
Other fashion chains are now producing closer to the home markets more often, betting on more and smaller collections throughout the year to move faster, but Primark does do more things differently from its peers. ‘For example, they all do e-commerce, we don’t. The reason is simple: it costs too much. In the UK, we do test click & collect. That works, the aim is to make people come to our shops. We have done two big test projects: in the Manchester-Liverpool region and in London. Now we are rolling it out step by step. In Europe, it’s not happening yet.’
‘What is new is that we are trying to generate traffic with our website. Since last season, our customers now see online the availability of our products in each shop. That avoids disappointments, it’s a real plus. Especially the younger generations are connected.’
Pride in the job
Worth noting: Primark does not push stock in shops, shop directors order their own stock. ‘They know their clientele, they are trained, have experience, knowledge of the brand and of the local market. That autonomy is our strength: it really is a sense for commerce. At Primark, we let our managers do business, make choices. We are real commerçants. I went through full automation in a previous job. That works well too, but you still lack that touch.’
What are the biggest challenges for the sales director today? ‘We are confident in our model, there is still potential. We are not doing everything perfectly and we are working to get better, but it is clear that we are catching on in Belgium. Every shop attracts a lot of customers. I want to make sure that our people can grow and enjoy their jobs, that they are proud to work at Primark. The job market is very competitive in Belgium, but we recruit well.’
