Primark enjoys strong Christmas trading
Associated British Foods has reported that sales at Primark rose 16% in the 16 weeks to 7 January. The group said the fashion chain enjoyed a particularly strong Christmas after a slower start to the financial year due the unusually warm autumn.
The retailer also added 0.5 million sq ft of selling space in the period and opened nine new stores. These included two in Spain, three in Germany, one Portugal, one in the Netherlands, and two in the UK.
Two concessions were opened in Selfridges stores in Birmingham and Manchester. Further openings are planned for the second half including three stores in Spain, in March. Capital expenditure on new stores and refits for the full year is expected to be similar to last year.
Primark’s operating margin was lower than in the same period last year reflecting the continued absorption of higher cotton costs. The retailer said a recent fall in cotton costs would be reflected in lower input costs in the second half.
The retailer now operates from 232 stores with 7.8 million sq ft of selling space.
