Primark, owned by Associated British Foods, continues its success as its Retail division records a 7.3% increase in sales during the 16 weeks leading to January 6, reaching £3.376 billion. Despite a slow start due to unseasonal warm weather, the trading update highlighted “strong” Christmas trading, with like-for-like sales growing by 2.1%, driven by higher average selling prices.
Both women’s and menswear performed well, especially in performance wear, leisure, tailored clothing, and the Rita Ora collection. Specific Christmas ranges sold effectively, and sales of cold weather clothing significantly improved despite the initial slow start.
In the UK, total sales rose by 4.5%, and comparable sales increased by 3.8%. Market share hit a new record at 7.1% for the 12 weeks to December 10. In the rest of Europe, where Primark expanded with new stores, total sales increased by 8.1%, with like-for-like sales up by 1.3%. The company opened eight new stores in the period, contributing to its strong store expansion program.
While Europe’s performance was mixed due to various factors, sales in the US surged by 45%, driven by three new store openings. The company ended the period with stock levels in a favorable position and is monitoring the situation in the Red Sea but does not expect significant disruption to its supply chain at this stage.
