DAVY VIEW

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.