// Primark sales for the 24 weeks to March 5 are expected to be more than 60% ahead of last year
// The retailer said that customer footfall had picked up in most markets, particularly the UK and Ireland, following disruption caused by the Omicron variant
Sales at value fashion giant Primark surged 60% year on year in its first half – when stores remained open, in contrast to the raft of Covid closures it experienced during the previous year.
The better outcome reflected the fact that all Primark stores remaining open and trading throughout the period, except for short periods in Austria and The Netherlands.
Primark’s operating profit margin in the first half is expected to hit 11%, however it believes this will fall in the second half due to further inflationary pressures.
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Primark owner Associated British Foods revealed that the negative impact of inflation on raw materials and the supply chain in the first half was broadly mitigated by a reduction in store operating costs and overheads at Primark.
Back in January the group said it would not raise prices for spring/summer despite many of its rivals such as Superdry and Next planning price hikes.
Primark, which solely trades through its physical stores, said “customer footfall is picking up again in most markets, particularly the UK and Ireland”, following the disruption caused by the outbreak of Omicron.
Sales in UK stores were “well ahead of last year” while like for likes are expected to be 9% below pre-pandemic levels of two years ago and total sales will be 8% lower.
The retailer said stores in retail parks and town centres continue to outperform destination city centre stores and retail park like-for-likes were ahead of pre-Covid levels.
Sales in Primark’s European business were also well ahead of last year and its US business continues to outperform the rest of the store estate, ABF said.
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