Primark trades ahead of expectations
Primark owner Associated British Foods (ABF) has adjusted its expectations for the retailer for the financial half year.
ABF now believes total sales at the retailer will reach £4.2bn for the half year, 19% ahead of the same period a year prior.
The group said that sales at Primark had been bolstered by an increase in footfall in the UK and Europe, with sales in 2021 and 2022 affected by disruption caused by the Omicron variant, while COVID restrictions remained in place in many European countries.
ABF added that all new Primark stores that have opened in the financial year are performing well, and expects its retail selling space to reach 17.8 million sq ft for the half year, ahead of 17 million sq ft the year before.
It added that Primark’s market share of the UK’s clothing, footwear, and accessories market increased from 6.3% last year to 6.8%.
Associated British Foods said: “Looking ahead to the second half, we remain cautious about the resilience of consumer discretionary spending in the face of continuing inflation in the cost of living and higher interest rates. Our expectation is that like-for-like sales growth in the second half will be lower than that achieved in the first half but, based on our experience to date, will be better than our previous expectation.”
ABF operates a number of other businesses, including Twinings Ovaltine, Allied Bakeries, as well as an agricultural business and sugar production company.