Primark announced that it is now able to commit to pay for some £370m of additional orders for product over and above the £1.5bn of stock in stores, depots and in transit. This means it will now take all product that was both in production and finished, and planned for handover by 17 April.
This new commitment follows extensive one-to-one conversations with their suppliers, which began four weeks ago and helped them identify mitigating options, including extended payment terms.
Primark’s Product and Sourcing teams will continue to work closely with suppliers to implement these plans. Where suppliers need new sources of credit, Primark will seek to assist by, for example, demonstrating commitment to orders, initiating conversations with international lenders and liaising with governments.
Primark also hopes to re-commence placing future orders for Autumn/Winter stock once there is further clarification of the reopening of stores.
Primark had previously committed to paying for orders that were in transit or booked for shipment by 18 March. This now brings Primark’s total stock both owned and committed to nearly £2bn while the stores remain closed.
This announcement will not affect the commitment made within the wages fund Primark announced on 3 April. This fund was established to make sure workers are paid as soon as possible for work on Primark product that was in production.
Paul Marchant, CEO, Primark said: “This announcement represents a further ongoing commitment to our relationships with our suppliers. We have been in close and regular contact with our suppliers over the last few weeks to find a way forward, and to pay for as much of the previously ordered product as possible. Transparency and clarity have been at the heart of our longstanding relationships with our supply base and we were obviously disappointed that we were not initially able to commit to this stock. Our partnerships with our suppliers are invaluable and we want to continue to support them as we navigate our way through this global crisis.”