BUT CORONAVIRUS HAMMERS PROFITS

BUDGET fashion giant Primark has enjoyed a jump in sales since stores reopened.

Owner Associated British Foods said takings in the days after stores in England reopened on June 15 were up year on year.

ABF finance boss John Bason said it wasn’t a “spike” caused by pent-up demand, and that sales had remained high since.

“I think there are a lot of people who haven’t yet ventured out,” he said.

Primark has made £322million in sales since its stores in Europe reopened seven weeks ago, 12 per cent down year on year.

The firm has held off slashing prices of unsold spring and summer clothing and expects to place orders for £1billion worth of autumn and winter ranges.

Bason said city centre branches were quieter, as fewer office workers and tourists return because of Covid-19 restrictions. But he said “a lot of regional stores are doing well”.

Primark sales have recovered well, but annual profits are still set to be down, from £913million to £300million- £350million.

ABF, whose sprawling business takes in everything from sugar production to Twinings tea, said group sales fell 39 per cent to £2.6billion in the three months to June 20, but lockdown boosted demand for grocery products. There are also fears of job losses at Allied Bakeries after the ending of a contract to supply bread to The Co-op. Asked if redundancies were possible, Bason said: “We’re going to have to look at it.”

A number of Primark stores are in centres owned by Intu, which recently collapsed into administration. Bason said he would be “amazed” if any centres closed.