Name: Why Primark Is Thriving While Retailers Like Forever 21 Are Closing | WSJ The Economics Of
Uploaded: 2023-08-06T08:55:54.000Z
Duration: 7 min 14 s
Description: VoiceTubeの動画で発音を聞きながら英語表現を覚えよう！学べる英語：

European fast fashion retailer Primark made 9.5 billion

and our clear choice is bricks and mortar.

- [Narrator] This comes at an uncertain time

And while a UBS report shows up to 80,000 retail stores

Primark plans to expand to 60 stores in the same timeframe.

- [Speaker] Is driving two hours from Toronto

Heck yes, I used to fly six hours to do so.

- So how is Primark expanding without online shopping?

- Fashion retail is incredibly competitive,

There's not many players, especially in fast fashion

that you have to have this online presence.

actually incredibly expensive for retailers.

and then you'd probably have a local distribution center

from which you have to do last mile delivery.

Each step of that just is an extra layer of cost,

in fashion is very, very slim anyway, but the real killer

for e-commerce is somebody who buys something

on the internet is far more likely to return that product

of the biggest profit losses for online retailers.

On average, processing a return for $100 worth

of merchandise bought online costs a company 26.50.

For years, online retailers just ate these expenses.

of them deciding to pass the cost back to the consumer.

- Primark have just stayed right from the beginning,

we don't think we can make money out of e-commerce.

on the physical store and protect our margins.

- Now Primark is expected to close all 189

and it doesn't have an online offering to fall back on.

- E-commerce was a lifeline for a lot of retailers

They couldn't open their stores, but they were still able

after its revenue dropped by almost 2 billion pounds.

- And I think their confidence in this model

of having no digital sales and only using stores I think,

I think the closures weren't quite long enough

and force them to fundamentally rethink the model.

- [Narrator] Instead of traditional online shopping,

in 2022, Primark launched a trial service called,

Customers can select certain products online,

So Primark still has some cost to maintain its website

but it's cheaper than running a true online shop.

- So Primark makes a sale, but they don't have any

of the logistical costs that would be involved

in packing it up and then shipping it out to your home.

- [Narrator] And there's another bonus for Primark.

to collect their purchase, they're likely to browse around

of making some extra sales when that person visits them.

Essentially, once you've already decided to make a purchase,

it's easier to justify adding more to your cart.

- It always feels just overwhelmingly busy

with people who are in there looking for bargains.

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Why Primark Is Thriving While Retailers Like Forever 21 Are Closing | WSJ The Economics Of

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