Primark delivers goods for AB Foods

● Group sees sales at its UK Primark operation rise 9% in latest period

sales growth many high street retailers would kill for.

“Primark’s North American expansion finally seems to be gathering a head of steam too, with the two new US stores opened this quarter trading particularly well.”

He added: “AB Foods’ other businesses are rather idiosyncratic, but the Sugar business at least has significant scale and has been putting in a better performance as sugar prices have recovered after a period in the doldrums.

“Early noises suggest volumes will rise next year, with the division continuing to sweeten results.”

Nick Bubb, independent retailing analyst and consultant, said: “Today’s trading update from the sprawling conglomerate ABF is upbeat about the ‘jewel in its crown’, namely mighty Primark.

“The core UK Primark business has seen sales growth accelerate from 7 per cent in the 24 weeks to 4 March, to 9 per cent in the 40 weeks to 24 June, implying very strong trading over the last 16 weeks, boosted by strong Easter trading.

“Further afield, ABF flag that early trading at the new Primark stores in Florence in Italy and at Staten Island in New York and South Shore in Massachusetts in the US has been particularly good.”