Primark sales growth on target
Value clothing retailer bucks the market
February 23 2004
UK value clothing retailer Primark performed well in the tough clothing market over the key Christmas trading period.
Primark owner Associated British Foods said the business has performed well since the company last updated the market, in early December.
Sales for the full year to the end of February will be ahead year-on-year, thanks both to an increase in selling space through extensions of existing stores, and like-for-like growth “up to our expectation”.
ABF said Primark’s profit will also reflect margin improvement arising from factors including currency benefits. Six stores have been acquired which will open by the end of the financial year.
Primark now operates around 120 stores and has been focusing on larger outlets. Last year saw the offer expanded with the launch of a range of home furnishings.
[img r]ovaltine.jpg[/img]ABF said its overall trading remains broadly in line with expectations. In its grocery operation, UK bread prices have been increased to recover higher wheat costs, while the integration of the Ovaltine brand acquired with ABF’s Twinings business is expected to be complete this spring.
