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Primark ‘constantly looking for slavery in its supply chain’

Budget fashion chain Primark has said it was constantly on the watch for any slavery in its supply chain while dismissing the idea that low cost meant exploitation.

Paul Lister, head of Primark’s ethical trading team, said last month the retailer known for cheap, high turnover fashion kept its costs down by not spending on advertising and buying in bulk to achieve economies of scale.


After years of facing accusations of using “sweatshops” employing “slave labour” to produce T-shirts for just £3, Primark has this year started to talk publicly about what it is doing to ensure its supply chain is ethical.

Lister said Primark’s business model was designed to produce low cost goods but he acknowledged the garment supply chain was complicated and the retailer was always looking to spot any issues.

Primark uses 1,700 supplier factories globally to stock its 290 stores in Britain, Europe and the United States.

Lister said it was hard to know where cotton came from, so Primark started projects in the cotton fields of Gujarat in India in 2013 in an sustainable farming initiative known as Cotton Connect that recruits female smallholder farmers.

“We have now expanded to 10,000 farmers in India producing cotton,” said Lister.

Lister stressed it was important to see the benefits of employment in the developing world, with the factories used by Primark employing about 750,000 people which impacted 2.4 million people, factoring in families of workers.

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Asda sales plunge, chair blames government of low confidence

The supermarket struggled with technology issues during a lengthy effort to separate IT systems from former owner Walmart.

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Asda reports sharp sales fall, chair blames government for 'killing consumer confidence'

Highlights

  • Asda sales fall 3.8 per cent to £5.1 bn in three months to September, with comparable store sales down 2.8 per cent.
  • Chair Allan Leighton blames IT system problems from separating technology from former owner Walmart.
  • Leighton criticises government for hampering business investment and depressing consumer sentiment.
Asda has reported a sharp sales decline while criticising the government for "killing confidence" among consumers, though its chair admitted "self-inflicted" technology problems had set back turnaround plans by six months.

Total sales at Britain's third-largest supermarket fell 3.8 per cent to £5.1 bn in the three months ending September compared with the same period last year, reversing 0.2 per cent growth from the previous quarter. Comparable store sales dropped 2.8 per cent.

Chair Allan Leighton, who returned last year to revive the business for a second time, told the guardian that the fall in sales and market share was "totally self-inflicted." The supermarket struggled with technology issues during a lengthy effort to separate IT systems from former owner Walmart.

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