Primark sales to jump 60% after pandemic recovery
Associated British Foods (ABF) has reported rebounding business at Primark, with sales expected to jump 60% for the 24 weeks to 5 March, compared with the same period in 2021.
In a pre-close period trading update, the company reported that sales across the company’s UK stores are “well ahead” of last year as shoppers flocked back.
“UK like-for-like sales have improved and are expected to be 9% below two years ago, and total sales are expected to be 8% below two years ago,” the company added.
“Stores in retail parks and town centres continue to outperform destination city centre stores, with like-for-like sales in retail parks ahead of pre-COVID levels.”
Primark added that it has been boosted by the opening of 27 new stores over the past two years. All Primark outlets remained open throughout the 24 week period, apart from short periods of closures in Austria and the Netherlands.
ABF said the impact of inflation on raw materials and Primark’s supply chain was offset by cost-cutting and currency changes during the half-year.
The company recently confirmed that 400 jobs are set to be axed across UK stores as it looks to simplify its UK store retail management structure, aiming to “provide clearer accountability, greater flexibility and more management support on the shop floor”.