In its 56-year history, Primark, the Dublin-based fast fashion retailer that operates under the Penneys brand in Ireland, has had just two chief executives: its founder, Irishman Arthur Ryan, and Englishman Paul Marchant, who took over in 2009.
Marchant exited the budget retailer in spectacular fashion on Monday following an investigation, initiated by its parent company Associated British Foods and carried out by external lawyers, “into an allegation made by an individual about his behaviour towards her in a social environment”.
He “acknowledged his error of judgment and accepts that his actions fell below the standards expected by ABF”, the company said.
“Our culture has to be, and is, bigger than any one individual,” said ABF chief executive George Weston.
Irishman Eoin Tonge has taken over as interim CEO, switching from his role as finance director with ABF. An accountant by training, he was previously a senior executive with Irish-listed food group Greencore and with British retailer Marks & Spencer.
Will he be given the job on a long-term basis? One source noted how Primark has always been run by a merchandiser, so probably not.
Succeeding Ryan at Primark was a bit like taking over from Michael O’Leary at Ryanair. A thankless task for the successor but one that Marchant, who previously worked for New Look and Debenhams among others, seemed to have pulled off.
He successfully led Primark into the United States (it is now 4 per cent of its sales), more than doubled its footprint of stores and navigated the challenges of Brexit, Covid-19 and the cost-of-living crisis. It now operates from 460 stores in 17 countries, with about 80,000 staff, and Marchant even dipped the company’s toes into digital, with a click-and-collect service available in more than 100 stores.
However, in a trading update in January, Primark revised down its sales outlook for 2025, having reported a 6 per cent drop in like-for-like sales in the UK and Ireland, which account for 45 per cent of its sales. Cautious consumer sentiment in the UK was cited as the main reason for this cut. It is due to report its interim results on April 29th.
Marchant’s shock departure, from what was the darling of retail for so long, just adds to the sense of flux at Primark right now.
