Primark posts surge in Christmas sales
Primark has reported “very strong” trading in the lead-up to Christmas with good performances across all of its markets.
The fashion retailer’s owner, Associated British Foods, said trading was ahead of expectations in the 16 weeks to 7 January 2023 following strong footfall in the UK and the Eurozone.
Sales in the period rose by 15% at constant currency rates and reached a new record in the week leading up to Christmas Day.
Meanwhile sales in the UK climbed by 15% on the same period last year, nearly all of which was like-for-like growth. ABF said footfall is now strong in major UK city centres as well as on high streets and retail parks.
Sales in Europe, excluding the UK, increased by 16%. Primark has opened 12 stores in the region over the last 12 months in places like Bucharest in Romania and Caserta in Italy.
ABF said is was encouraged by sales growth of 4% in the US where Primark is planning to nearly double selling space in the current financial year. The retailer opened three stores in the country towards the end of the period in Long Island, Queens and Brooklyn.
Primark has continued to develop its digital capability with improved functionality and an enhanced customer experience. The retailer’s website’s traffic has increased by 85% in the UK since last year, with double the average pages viewed per session. Primark has also recently launched its website in the Republic of Ireland which will be followed by Germany, Spain and the US in the coming months.
ABF said it is encouraged by a click and collect trial of children’s products in 25 Primark stores in the UK.
Looking ahead, ABF said: “We believe our proposition of great quality at affordable prices and attractive store experience is proving increasingly appealing to both existing and new customers. Early trading in this new calendar year has been encouraging but macro-economic headwinds remain and may weigh on consumer spending in the months ahead.”
