Primark post-lockdown gross sales head for £2bn

Primark

The proprietor of High Street vogue chain Primark has mentioned gross sales have been greater than anticipated since shops reopened after lockdown, however are nonetheless decrease than final 12 months.

Associated British Foods mentioned gross sales since reopening would hit £2bn by the tip of the 12 months.

However, that might be 12% decrease on a like-for-like foundation than in 2019.

Primark’s 4 greatest shops, in Birmingham, Manchester and London, had been particularly onerous hit, it mentioned.

“If the four large UK destination city centre stores are excluded, the decline is 5%,” it added.

Primark’s greatest UK retailer is in Birmingham and has 160,000 sq ft of floorspace. The subsequent largest, in Manchester, is 155,000 sq ft.

Its two shops on London’s Oxford Street are 82,000 sq ft and 70,000 sq ft respectively.

“After a period of store closure, we are encouraged by the strength of our sales,” AB Foods mentioned in its newest buying and selling replace.

“In the latest four-week UK market data for sales in all channels, Primark achieved our highest-ever value and volume shares for this time of year.”

The agency mentioned buying and selling in its meals divisions had additionally been higher than predicted thus far within the fourth quarter.

“Since reopening Primark stores, we have seen increasing numbers of transactions driven by footfall,” it added.

“The common basket dimension was initially considerably greater than final 12 months, reflecting some pent-up demand, and whereas this out-performance has diminished in latest weeks, it stays greater than a 12 months in the past.

“We have continued our policy of offering the best prices, and markdowns for the period since reopening have been low.”

Primark had made it clear earlier than its shops reopened on 15 June that there could be no particular reductions to shift inventory.

AB Foods mentioned full-year earnings at Primark within the 12 months to 12 September could be not less than on the high finish of its beforehand suggested £300m to £350m vary.

Last 12 months, the equal determine was £913m.

AB Foods mentioned its grocery revenues could be larger than final 12 months, with development in manufacturers reminiscent of Twinings tea and Ryvita crispbread.

However, it mentioned gross sales of Ovaltine had been held again by the affect of coronavirus on impulse gross sales, significantly in Thailand and Vietnam.


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