Primark sales up 20% in third quarter
Budget fashion retailer Primark saw its revenues increase by 20% in the 16 weeks ending 22 June as warmer weather in May and June drove an improvement in like-for-like sales from the colder months of March and April when sales were more subdued.
Owner Associated British Foods said the strong revenue growth in the quarter meant that Primark’s sales in the 40 weeks to 22 June had risen by 22% driven by an increase in retail selling space and good like-for-like growth.
In a statement the group said: “Like-for-like sales growth in the first half was flattered by an exceptionally strong start to the year with the benefit of seasonal autumnal weather in 2012 compared with an unseasonably warm autumn in 2011. In the third quarter, like-for-like growth was subdued during the very cold months of March and April but we have seen a marked improvement with the better weather in May and June.”
Extensions to Primark’s Manchester and Newcastle stores were completed on schedule and at 22 June, the retailer was trading from 257 stores with 9 million sq ft of selling space. New store openings will accelerate in the new financial year and will include expansion into France with the opening of a new store in Marseille.
Never Miss a Retail Update!Commenting on the building collapse at Rana Plaza in Bangladesh in April, ABF said:“We were deeply saddened by the tragic events caused by the building collapse at Rana Plaza in Bangladesh in April where one of Primark’s suppliers was located on the second floor. We donated food to some 1,300 families shortly after the event and we have already paid short-term financial compensation to more than 3,300 workers in the building, irrespective of their employer. Primark has committed to long-term compensation for victims who worked for its supplier, and their dependents.”
Across the group, ABF said that revenue had increased by 9% in the 40 week period.
