Ireland-based budget fashion chain and Associated British Foods PLC subsidiary Primark has been criticised for its record on workers’ rights and the effect of its low-cost, high-volume model on the environment.
But Chief Executive Paul Marchant does not agree. ‘I don’t buy the story that we can’t be ethical buying from Asia,’ he told AFP in an interview in Dublin.
The brand produces its garments in Asia and sells them cheaply in Europe. It has been a lucrative formula, with Marchant boasting recently that the retailer had hit the £1 billion ($1.3 billion) profit figure for the first time.
Primark, though, still has to bat back critics including environmental campaigners who argue that the brand’s ‘throwaway’ fashion is a drain on resources.
Human rights groups meanwhile accuse it of relying on suppliers in countries where workers are afforded little protection.
Primark maintains that it conducts regular audits of its suppliers to ensure workers and land are not exploited. Nonetheless, its model relies on policing of regulations in India, Pakistan and Bangladesh, where its garments are mainly produced.
‘Providing you have the right partners... and have the right guards and measures and controls in place... I don’t see any reason why you can’t have a very robust ethical supply chain at source,’ said Marchant. The company, he added, complies with the International Labour Organization’s code of conduct.
Primark published a report on its supply chain in 2018 but it only covered its own clothing factories, not its partners.
Asked about the sheer volume of clothing his company sells, Marchant is insistent.
‘We’re not flooding the market with unwanted goods,’ he said. ‘We sell everything that we buy.’
He also claimed that his products are less sensitive than other brands to the whims of fashion, with half of its collections consisting of everyday clothing.
Primark is a thriving subsidiary of the agri-food giant Associated British Foods, and sells its clothes in 17 countries.
Primark intends to expand in the US and Europe (France, Spain, Portugal and Italy), Marchant explained.
The brand has also signed with ‘a franchise partner’ to open stores in the United Arab Emirates, Kuwait and ‘potentially’ Bahrain and Qatar within ‘12 to 18 months’, he added.
The company also achieves economies of scale by purchasing larger volumes than its competitors and does not sell online.
Instead, it hopes to lure customers to stores by expanding partnerships with popular brands such as Netflix, Disney and Hello Kitty.
Shares in AB Foods closed 0.1% lower on Wednesday in London at 2,200.00 pence.
By Ornella Lamberti
source: AFP
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