Bargain hunters boost the bottom line at Primark

Primark has benefited from cashstrapped shoppers hunting for bargains, as owner AB Foods raised its forecasts for the year.

The clothing retailer now expects profit for the year to be flat, rather than to fall, as demand has proved to be more resilient than anticipated in the face of cost of living pressures.

John Bason, AB Foods’ finance director, said customers were seeking out “great value for money”. Sales were up almost a fifth at its Primark stores in the first half of its financial year.

Meanwhile, AB Foods said it was still experiencing pressure in its sugar business, where production has been hit by a poor harvest. It owns British Sugar – the supplier of more than half of the sugar consumed in the UK.