Primark owner sees profits soar as it expands Click + Collect service following successful trials

The owner of Primark has seen half-year earnings soar by more than a third as it rolls out the retailer's Click + Collect service across all its stores in England, Wales and Scotland.

The expansion follows a successful trial period that resulted in "good basket sizes and strong additional attachment store sales".

It introduced womenswear last September after previously launching with kids and nursery ranges in October 2022.

The news comes as part of Associated British Foods' latest financial results, which benefitted from new stores, lifted prices, and the return of better business conditions.

The group, which also owns household brands spanning from British Sugar to Blue Dragon, said consumers remain under some pressure from the cost-of-living crisis.

It revealed its pre-tax profit hit £881 million in the six months to March, up 37% compared with the same period last year.

The company said this was a consequence of investment in previous years on expanding its stores and making parts of the supply chain like warehouses more efficient.

Group revenues ticked up 5% at constant currency to £9.7 billion, driven by demand across its retail and food businesses.

Sales at Primark were lifted by newly opened stores and price rises put through on some clothing lines last year, as part of efforts to cushion the impact of cost inflation.

However, shoppers put slightly fewer items in their baskets over the period as households continue to see incomes squeezed.

Chief executive George Weston said it is a "very strong set of financial results" as the group benefits from the "restoration of some normality in our markets and in our supply chains".

He said this was being seen in a reduction in shipping costs, and supply chain disruption easing since the Covid-19 pandemic.

The impact of recent attacks on container ships in the Red Sea has had much less impact than it feared, adding less than a week’s delay to some shipments from China and South-East Asia, Weston added.

Looking ahead, the group expects Primark to continue to perform well in the second half, driven by its store expansion programme and modest levels of like-for-like growth as it focuses on driving volumes.

"While the consumer environment remains soft, we expect to
benefit from the strength of our value proposition, our product relevance and category stretch, and our increasingly effective digital engagement," reads a statement from Associated British Foods.