Primark owner says sales improving despite ‘consumer caution’

The parent firm of Primark has said the value fashion retail chain saw trading improve in recent months despite “consumer caution”, as its UK and Ireland stores recovered ground.

Associated British Foods (ABF) said Primark sales are set to have grown by 1% over the half-year to 13 September, as womenswear and more favourable weather conditions helped support UK stores.

However, like-for-like sales are expected to have dropped by around 2% over the period but were offset by the group’s store expansion plans, with Primark opening 15 new stores including two in the UK.

Primark sales were also strong in the US but were weaker in Europe because of a “more subdued consumer environment”.

ABF CEO George Weston, said: “I’m pleased with how the group has performed in the second half of our financial year in what continues to be a challenging environment, characterised by consumer caution, geopolitical uncertainty and inflation.

“Primark delivered improved trading in the UK and strong sales growth in the US, while trading on the continent was softer in a weaker consumer environment. In our food businesses, overall trading in the second half was in line with our expectations.”

The company said concerns over the wider economy were weighing on consumer sentiment.

Weston told the PA new agency that household inflation and “fears about unemployment” were continuing to drag on shoppers in the UK, Europe and US. He said Primark was not increasing prices despite recent cost increases.

Earlier this month Primark unveiled its first TV campaign with a focus on its AW25 denim collection (main image). Other recent innovations include the launch of its first customer app,  the roll out of click & collect to all of its UK stores, and the opening of its first dedicated home store.