New store openings provide boost for Primark
PRIMARK HAS reported higher revenues on the back of new store openings, as UK like-forlike sales dipped marginally lower.
The high street fashion chain’s growth helped drive revenues up at owner Associated British Foods (ABF), which saw group revenues rise 4 per cent over the 16-week period to January 4.
Primark saw its UK sales grow by 4 per cent as it benefited from new stores and expansions, while sales across the retailer were up 3 per cent.
The company hailed “good trading” over November and December, despite highlighting a “marginal decline” in like-forlike sales.
Meanwhile, ABF said Primark saw sales in its eurozone business jump 5.1 per cent higher on the back of “strong progress in France and Italy”.
Primark said it heavily benefited from three store openings during the period, as well as site expansions.
It said it expects to open 18 new stores during the financial year as it continues its expansion programme.
John Bason, chief finance officer at ABF, said the retailer performed well given “softer volumes” across the retail market.
He said: “The UK consumer has more discretionary income than before but spending has decreased so there is clearly a degree of caution in retail and there has been in other areas.
“I think Primark has made a clear statement here and
I think we performed well because we went back to basics.”
We performed well because we went back to basics. John Bason, chief finance officer at Associated British Foods