Primark owner hopeful despite crash in sales
PRIMARK owner Associated British Foods (ABF) has said sales at the high street retailer have been “encouraging” after reopening sites, despite predicting a major hit to profits.
ABF said the chain has been boosted by strong sales of children’s clothes and leisurewear but that sales for the past quarter plummeted 75 per cent to £582million as a result of the virus pandemic.
The consumer group said total sales across its divisions had fallen by 39 per cent to £2.6billion for the quarter to June 20, compared with the same period last year. 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 that have welcomed customers again.
Customer demand has also been strong for summer clothing such as shorts and T-shirts, while sales of formal menswear and travel-related accessories have been “unsurprisingly weak”, it said. In a statement, the company added: “Most of our regional stores are performing well, especially in retail parks. Our stores in the centre of big cities are suffering from the current absence of tourism and much lower commuter footfall.”
It said sales in the first week of reopening in England and Wales were “ahead of the same week last year” after raking in £13million from customers.
Finance chief John Bason told the PA news agency that Primark stores in regional cities across the UK have performed particularly strongly. But ABF also warned that the Covid-10 crisis could knock more than £600million off Primark’s operating profit for the year.