Friday, November 24, 2017

Primark performing better after slow Christmas

29

Like-for-like sales at Primark improved following a weak Christmas trading period, and the retailer’s profit margins are doing better after “a lower level of markdowns fuelled by a well-managed stock position”.    

Sales at Primark are expected to be up 7.5% at constant currency driven by increased retail selling space. 

“Following a strong performance at the start of the financial year, trading was weaker in the weeks leading up to and over Christmas as a result of unseasonably warm weather across northern Europe,” said Primark’s parent company Associated British Foods.. “Cumulative like-for-like sales have improved since the January trading update and are expected to be level with last year in the first half after better trading during the period since then.”

Internationally sales in France were kept afloat with strong like-for-like sales. US consumers have responded well to Primark and thus, the value fashion chain will open a further six stores in the US later this year and a 70,000 sq ft store in the American Dream shopping mall in New Jersey in calendar 2017. In addition, Primark will launch its first Italian store in April in Arese, north-west of Milan, and a store in a mall north of Florence by summer 2017

ABF added that it was making a “significant investment” in its warehouse infrastructure.