Primark to halt price hikes as cost of living soars

8th November 2022 | Jack Oliver

Fashion retailer Primark will not raise any more of its prices before next autumn, its owner has said.

Its parent company Associated British Foods (ABF) said it plans to “stand by [it’s] customers” as inflation continues to rise.

According to the company’s annual results released on Tuesday morning, Primark enjoyed healthy sales of £7.7bn, 43% ahead of last year, it said like-for-like sales and market shares were now broadly in line with pre-COVID levels.

Unlike many of its rivals, Primark has not completely embraced online shopping, but has recently launched a click-and-collect service. It has launched 25 new stores within the last year.

George Weston, chief executive of ABF, said: “Looking ahead, substantial and volatile input cost inflation will be the most significant challenge in the new financial year, and our businesses will continue to seek to recover these higher costs in the most appropriate way.”

ABF’s chairman, Michael McLintock, described “the most challenging economic conditions for many years”.

The company spoke of a “volatile backdrop”, citing the weakness of the pound, rising energy costs and reduced consumer income. As a result, ABF said it would not implement further price increases on this year’s autumn/winter and spring/summer ranges beyond those actioned and planned.

“We believe this decision is in the best interests of Primark and supports our core proposition of everyday affordability and price leadership,” ABF added.


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