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Why Primark is so cheap?

Irish retailer Primark was established in 1969 starting with a single store in Dublin. Today, it has 292 stores. Primark is known for its fashionable items at affordable prices. From blouses to shoes, you can walk away with a bag of decent-quality goodies at bargain prices.

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One of the main reasons why Primark can afford low prices is they operate on a volume basis not on margins. Hence, even if prices are low, shoppers will actually buy more and every little thing adds up contributing to increased revenues.

Photo: Twitter

Photo Gallery: Types of edible mushrooms

Primark is not about brands unlike the big names on high street. It sells clothing, shoes and accessories without the hefty price tag and the brand attached to it. These stuff are not costing the earth and are thus, low-priced.

Photo: Twitter

Photo Gallery: Types of edible mushrooms

Primark is not about brands unlike the big names on high street. It sells clothing, shoes and accessories without the hefty price tag and the brand attached to it. These stuff are not costing the earth and are thus, low-priced.

Photo: Twitter

Photo Gallery: Types of edible mushrooms

What's more, Primark does not keep a lot stocks. They sell what they have and if these run out, then they move to the next batch of merchandise. What does this mean? The store does not spend loads on stocking costs. Inventory moves fast and always updated.

Photo: Twitter

Photo Gallery: Types of edible mushrooms

Have you seen ads about Primark? Not really. They might run a few print ads every now and then or post on their Twitter page, but Primark has no huge advertising costs.

Photo: Twitter

Photo Gallery: Types of edible mushrooms

The retailer has also no need for lots of management staff which usually cost a company heaps of money. Their sales assistants, although numerous, are not costing that much.

Photo: Twitter

Photo Gallery: Types of edible mushrooms

The retailer has also no need for lots of management staff which usually cost a company heaps of money. Their sales assistants, although numerous, are not costing that much.

Photo: Twitter

Photo Gallery: Types of edible mushrooms

Another important factor in the success of Primark is that even though prices are low, the quality of stuff the store sells is not bad at all. From clothing to homewares, Primark merchandise are even up to date with fashion.

Photo: Twitter

Photo Gallery: Types of edible mushrooms

From the perspective of the shopper, hunting for a decent outfit at rock bottom prices is worth it. Primark has always discounted racks where you can find gems. Imagine getting a pair of linen pants for £2. That's not bad, at all.

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This is why customer perception is very important as well. Once a shopper walks away from the store with a bag of clothes and accessories and spent only £30, then this is a great feeling. This customer is likely going to come back for more and even spread the word to friends and family.

Photo: Twitter

Photo Gallery: Types of edible mushrooms

This is why customer perception is very important as well. Once a shopper walks away from the store with a bag of clothes and accessories and spent only £30, then this is a great feeling. This customer is likely going to come back for more and even spread the word to friends and family.

Photo: Twitter

Photo Gallery: Types of edible mushrooms

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