Primark Have Repaid Furlough Cash
Primark has succeeded in repaying the entirety of the furlough cash loaned to them during the pandemic. Despite shares dropping for the high street favourite, the firm has bounced back with gusto. Now, just a week after the non-essential shops re-opened, all £121 million initially given to Primark staff has been repaid.
Primark’s Furlough Costs
Following a dismal year on the retail front as a result of the covid-19 pandemic, Primark, like most retailers, was backed by the furlough scheme to keep their staff paid whilst the nation was in lockdown. The move was essential to support the shop workers across the UK. As a benefit, the furlough scheme offered job security to employees, who could not work during the lockdown.
This resulted in a debt of £121 million to be repaid worldwide. That’s no small feat, even for a hallmark of the high street. Luckily, non-essential shops reopened on Monday 12th April. Naturally, Primark is a firm favourite with parents.
Parents of children who have done a lot of pesky growing over the past year. So, when Primark opened its doors again, customers were queueing around the block to get into Primark and buy some new summer clothes.
Primark Breaks Previous Records
It’s not surprising, then, that it only took six days for Primark to break its record for UK sales. The previous record was based on sales from 7 days of being open when sales hit an all-time high for the company. Additionally, more than half of Primark’s stores beat their own store records.
Shares in Primark dropped to half their original value during the coronavirus pandemic, with dividends being halted until the industry is back up and running.
After shares in Primark dropped to around half their original value, you would be forgiven for thinking the company would be worried about their future. However, that turned out not to be the case. Still, the owner of Primark Associated British Foods remains cautious. After such a successful week, they are still working off their projected lost sales.
The projected lost sales from the last half of 2021 sit at around £700 million. Added to this, there are still some restrictions of sales, due to these being based in continental Europe. Still, the company appears to be feeling confident about its ability to move forward. Especially given that they have effectively refunded the government for their investment in workers.
Primark Repays Furlough Cash
The dividends have now been put back on the agenda throughout the UK after they were halted last year. And so, Primark has been proactive in returning the full £121 million which covered the employee furlough costs. Of this, £72m of which was based purely in the United Kingdom.
The move has surprised some economists – especially as most companies have preferred to stay under the radar about their sales income, so far. It is currently understood that the company made a huge loss of £3bn throughout the entirety of 2020.
The Owners of Primark
Primark is owned by Associated British Foods (ABF), which also owns the extremely well-known brands Twinings Tea and Ryvita. They are an internationally successful company, that can boast almost £14 billion in sales, with 133,000 staff members and operations across 53 countries around Europe.
Now that Primark has repaid the furlough cash, many are hoping that others will follow suit. It’s not often that a multi-million-pound company offers up money for the greater good, but hopefully, this one will set an example for others. Of course, it could be that the company now has a greater emphasis on offering fairness, as they have previously been in hot water for the origins of their clothes.
All-in-all, we’re glad to see the booming high street is back on the up, and hope that this works for the benefit of all employees who have been struggling over the past year.