// Primark to open new stores after strong trading in latest quarter
// Adjusted operating profit rose 15% to £415m in the 53 weeks to September 18
// Primark said it saw major growth opportunities across its markets
Primark owner AB Foods has announced it will open more stores after the retailer turned over a profit despite Covid disruptions.
The company’s adjusted operating profit rose 15 per cent to £415 million in the 53 weeks to September 18.
This is despite a 12 per cent decline in like-for-like sales during the same period.
READ MORE: Primark launches circular denim collection
Primark said the enforced store closures across its estate led to the decline.
A third of Primark’s available trading days were lost as countries reacted to the pandemic.
However, customers returned to stores once they reopened and has resulted in a strong profit margin recovery of 10.6 per cent in the second half.
Primark launched its sustainability strategy in September – a nine-year programme across all 14 markets in which it operates to ensure all Primark clothing is made from recycled or more sustainably sourced materials by 2030.
The retailer is also set to launch a customer-facing website to showcase around 70 per cent of its ranges later this year, so shoppers will be able to check what’s in store before they visit.
Due to its successes, Primark said it saw major growth opportunities across its markets, particularly the US.
It plans to grow its store estate to around 530 stores – up from 398 stores currently – over the next five years, with 15 new stores confirmed to open by the end of the next financial year.
“Primark delivered a good performance in the face of continued disruption to trading caused by the pandemic,” AB Foods chair George Weston said.
“It also unveiled its wide-reaching sustainability strategy with the aim of making more sustainable fashion affordable for all.
“Although the possibility of further trading restrictions cannot be ruled out, we expect Primark to deliver a much-improved margin and profit next year.
“We are now intent on expanding our new store pipeline, and investing in technology and digital capabilities to continue improving the performance of the business.”
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