Primark seeks warehouse space for excess stock

Primark is reported to be searching for 400,000 sq ft of warehousing space to store the excess stock amassed during the COVID-19 crisis.

The value fashion giant is said to have already added up to 40% more warehouse space in reaction to the crisis, which has left it with an inability to trade as all of its stores are closed and it has no online operation. Property Week has reported that it has appointed Savills to search for the additional warehousing.

Primark has cancelled hundreds of thousands of pounds worth of forward orders from factories but is paying for all work up to mid-April 2020 and is working with its suppliers to ensure staff receive their wages.

The retailer's 189 UK stores are closed along with its stores in the US, France, Spain and Italy, though the European countries are gradually beginning to loosen their lockdowns.

For every month Primark stores remain closed, the company loses £650m in sales. However the company has insisted that it will not consider opening an e-commerce operation as a result and will clear its stock through its stores.