// Primark parent Associated British Foods said the fashion retailer’s full-year UK sales would approach pre-covid levels
// Primark total sales were predicted to be roughly £7.7bn, roughly 40% higher year-on-year at constant currency
Primark owner Associated British Foods has warned of lower profit next year thanks to dampened consumer confidence amid Britain’s soaring inflation and cost-of-living crisis.
ABF said soaring energy bills and its decision to limit further price hikes would hurt the value retailer and its margins next year, despite UK like-for-like sales improving in the fourth quarter, achieving close to pre-covid levels.
The retailer said it would not introduce further price rises next year “beyond those already actions and planned” to support its affordable position in the market, despite previously saying it would make “selective” rises in its current seasonal range.
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ABF acknowledged “declining disposable income” for shoppers due to historically high levels of inflation.
The company said that it expects total sales to be some £7.7bn, 40% ahead of reported sales last year at constant currency.
ABF stated full-year group revenues will be “well ahead” of last year and said it was also on track to deliver a “significant increase’ in adjusted operating profits and adjusted earnings per share.
The business said it is expecting full-year operating profit margin of 9.6% with a second-half operating profit margin of 8%, as it launches its regional UK click-and-collect trial in the Christmas run-up.
ABF has said the group’s outlook for the financial year remained unchanged despite the “significant increase in adjusted operating profit and adjusted earnings per share.”
ABF’s full preliminary results are expected to release on 8 November.
3 Comments. Leave new
Your coming across jealous that certain levels of staff get to work Mon-fri and you haven’t had the pleasure of doing so your self. To the dinosaurs comment. That boils down to poor management. If your commenting from a management level then you will have to bear some of the responsibility for this behaviour manifesting especially if your speaking at store manager level or above. Your in a position to neutralise this behaviour as you could either managed thous people to change or manage them out the business. You either didn’t or failed to do so.
Please push to report on Primark’s management restructuring which they first reported on in February this year and have gone very quiet on since. I know that the redundancy’s would of been considerable higher than the 400 job losses they said if they hadn’t dragged out this process causing people to leave the business due to leaving people in limbo.
Yes there has been a redundancy process insider, which has thankfully forced out dinosaurs in supervisor jobs who’ve been there for 20 years and only work Monday to Friday! Dinosaurs in manager jobs have also gone. I am sad weekend supervisors lost their jobs in my area of stores. But this has been right for the business.