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COVID 19- Primark reports zero sales

The Coronavirus situation in Bangladesh is affecting the profit margins of fashion brand Primark in the country. Before the pandemic, monthly $600 million worth of products were sold in Primark stores, while in the last month the brand reported zero sales.

Primark has 370 stores in 12 countries around the world. A large part of the garments is made in different factories across Bangladesh. But all their stores have been closed for the last month. Primark has stopped trading online. Its website now offers suggestions on how to refurbish your wardrobe, and how to decorate your house and celebrate your birthday alone in this lockdown.

Primark’s entire business model is developed by capitalizing on cheap labor countries like Bangladesh. The brand also has a very efficient supply chain. The brand has already canceled all orders from Bangladesh. Its stock has been sold in large quantities. Primark claims they have already paid for the orders that have already been delivered. The company also said that a ‘special fund’ will be set up for the workers in the factories where Primark’s clothing is made.

 
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