Fast fashion retailer Primark saw sales increase by 25 per cent in the 16 weeks to January 5th 2013, it was announced today.
Parent company Associated British Foods (ABF) recorded a 10 per cent rise in revenue across the group as a whole, driven by “outstanding” sales figures from Primark.
A spokesman for ABF commented that the surge in sales “was driven by very strong-like-for-like sales growth, a substantial increase in retail selling space and superior sales densities in the larger new stores.”
New store openings abounded in the period, as retail selling space increased by 1.1 million square feet year-on-year, bringing the fashion retailer’s store portfolio to 256 outlets across Europe.
Austria’s first two Primark stores opened in the period, as well as six new stores in Spain, one each in Germany and the Netherlands, and four in the UK, including a second branch on Oxford Street in London.
ABF expects expansion to slow for the remainder of the financial year, picking up again next year, but still expects to add another 200,000 square feet of space this year, including extensions to stores in Newcastle and Manchester and a new branch in Frankfurt’s Zeil shopping area.
Sales growth at Primark is expected to offset weak performance at AB Sugar, caused by poor growing conditions in 2012, as ABF reported that the group’s year-to-date trading had exceeded expectations.
A spokesperson for the company concluded: “In light of the group’s current performance we now expect to make further progress in adjusted operating profit for the full year, with the improvement heavily weighted towards the first half.”