Associated British Foods

Primark store visit highlights model relevancy and laser focus on price leadership

  • Sectors : Foods
  • Companies : Associated British Foods

Ratings and price correct at time of issue.

  • Associated British Foods

    Closing Price: 1639p

  • RATING 05/07/11

  • PREVIOUS RATING 03/11/10



Primark’s “obsessional focus” on price leverages a highly efficient supply chain and operating model and offers a defensive moat against a challenging economic circumstance. Like-for-like growth continues to nudge towards pre-COVID levels, with a broadened customer offering underpinning model relevancy and durability. Management reiterated its international growth ambitions, with the pathway to 530 stores “fully mapped out” — the US market is a key fulcrum. Increased focus on productivity, technology and sustainability reflects a team with a long-term, pro-growth mindset. While nascent, Click & Collect offers an interesting medium-term opportunity, providing flexibility for counter-seasonal demand.

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Jun 30 2022, 10:15 IST/BST