Daily Express

Strong summer sales boost Primark owner

- By David Shand

PRIMARK has shrugged off high street spending fears with bumper sales to fashion a brighter profit outlook for its parent group Associated British Foods.

The discount chain is close to leapfroggi­ng Next as the UK’s second biggest clothing retailer behind Marks & Spencer after claiming a “significan­t increase” in UK market share as its annual sales jumped 10 per cent.

ABF finance director John Bason said Primark was outperform­ing because “we’re on-trend, we have a great price, we have basics and we have fun”.

He added: “What really comes through in this market is value.”

It has also fought to keep prices low despite importatio­n costs growing because of the weakness of sterling.

Shoppers have been snapping up Harry Potter merchandis­e and pink flamingo pool inflatable­s, as well as traditiona­l items such as jeans and T-shirts.

Strong demand and fine weather enabled it to avoid heavy discountin­g and trading was “particular­ly strong” up to Easter. Early trading in the new autumn/ winter range has been “encouragin­g”. Annual sales are set to be 13 per cent ahead of last year at constant currency on the back of increased selling space and a 1 per cent rise in takings at stores open at least a year.

Primark opened 30 new stores across nine countries during the year to take its total to 345. A further 19 will open this year along with extensions and relocation­s.

ABF said the performanc­e by its fashion business means group-adjusted operating profit will be “well ahead of last year”.

The group, whose brands include Twinings, Kingsmill and Dorset cereals, has flagged an £85million translatio­n benefit from a weaker pound due to two -thirds of its operating profit being earned outside the UK.

Revenue and adjusted operating profit at its sugar business will be ahead of last year, but grocery profit is expected to be lower.

Neil Wilson at ETX Capital said: “If consumer spending is slowing, Primark is the sort of brand that benefits. At the same time it continues to build on its presence in the US, but it’s slow progress.

“Part of the reason for lower profits in grocery seems to be the proliferat­ion of supermarke­t ownbrand goods.”

 ??  ?? LOOKING FIT: Discount clothing store lifted AB Foods
LOOKING FIT: Discount clothing store lifted AB Foods

Newspapers in English

Newspapers from United Kingdom