Latest lockdowns cost Primark another £1.6 billion in lost sales

THE latest Covid lockdowns will cost Primark almost £1.6bn in lost sales.

In a sign of just how damaging restrictions have been to the economy, the company said it has missed out on £1.1bn of business in the past six months.

And it warned of a further £480m hit to sales in the coming weeks before its stores are allowed to reopen.

Primark – which is owned by Associated British Foods (ABF) – has suffered particularly badly because it does not have an online business.

The firm said sales in the six months to February 27 are expected to come in at £2.2bin, well down on the £3.7bn in the same period in 2020. When Primark’s shops have opened, sales have been down 15pc because of low footfall, muted demand for clothes and a collapse in commuting and tourism.

When it is allowed to reopen in the UK from April 12, the chain will look to shift £150m of unsold spring/summer clothing and £260m of autumn/winter stock left over from last year’s closures.

Bosses said they expect a strong boost once stores can reopen, releasing months of pent-up demand.

ABF’s finance chief John Bason said: ‘We’re looking forward from here, you don’t look back – the lost sales are the lost sales. Trust me, people will come back.

‘Has Primark been wounded by this? We don’t think so.

‘We think we’ll come out of this stronger because we are the anchor of high streets.’

The pandemic all but eliminated its earnings over the half, cut down to around £40m, compared to £441m made in the same period last year.

ABF’s other divisions in grocery, sugar, agriculture and ingredients are expected to see revenues and profits ahead of expectations.