// Primark warns of additional loss of £220m in sales thanks to Tier 4 restrictions
// The restrictions have been implemented following the spread of the new variant of Covid-19
Primark has warned that Tier 4 restrictions – which enforce non-essential retailers to close – will result in an additional loss of £220 million in sales as more stores are forced to shut throughout the country.
The fast fashion retailer’s owner AB Foods said it expected to lose £650 million in sales in the year to September, up from the £430 million it had announced on December 4.
The warning came after the government said major cities including Manchester and Birmingham must join London and the south-east of England in closing non-essential shops.
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Primark said 253 of its stores would now be temporarily closed from January 1.
The government announced that all of the north-east of England, Greater Manchester, large parts of the Midlands and the south-west would fall under the strictest Tier 4 restrictions from Thursday morning.
All of mainland Scotland, Wales and Northern Ireland are already under the tightest restrictions which involve the closure of hospitality and non-essential retail.
The restrictions have been implemented following the spread of the new variant of Covid-19.
Primark is set to receive a heavier hit from the store closures than rivals as it does not offer an online channel.
When Primark reopened in England last month after a month-long high street lockdown, the group said it saw “phenomenal” sales growth.
Eleven stores had stayed open overnight, resulting in a 40-hour trading marathon.
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