Fast fashion drives recovery at Primark as crisis costs it £600m

PRIMARK says trading has been ‘reassuring and encouraging’ since stores reopened – but will still take £600m hit to profits after lockdown.

Sales at the fast fashion retailer’s stores are recovering well after restrictions imposed to curb the spread of the Covid-19 pandemic cost £1.7bn worth of sales.

Its owner Associated British Foods (ABF) said the chain has been boosted by strong demand of children’s clothes and leisurewear since shoppers returned to its stores. But it added that sales for the past quarter plummeted 75pc to £582m. Primark is on course to make annual profits of £300m to £350m compared with £913m last year, the group said.

The consumer business, which also has sugar and grocery divisions, said total sales for the quarter to June 20 were 39pc lower than the same period last year at £2.6bn.

It said significantly lower sales at Primark, which has no online operations, were partly offset by growth in its grocery and ingredients arms.

ABF said only eight of its 375 Primark stores have not yet reopened, while it has reported ‘reassuring and encouraging’ trade from stores which have welcomed customers again. Customer demand has also been strong for summer clothing such as shorts and T-shirts, while thanks to pent-up demand over lockdown, sales in the first week of reopening in England and Wales were ‘ahead of the same week last year’ after raking in £133m from customers.

Finance chief John Bason said: ‘We’ve seen a fabulous response right across the country since reopening day. It’s clear people have missed us.’