Primark counts on a 430 million Christmas miracle

Primark store in shopping centre
Photo: Grand Warszawski / Shutterstock.com

Primark is counting on a "phenomenal" Christmas. The fashion chain estimates that it lost 430 pound million (475 million euro) to the corona crisis, and hopes to recover much of that by the end of the year.

 

Significant profit in corona year

Primark is trying to recover 430 million pound (475 million euro) in sales lost through lockdowns. That is the total loss estimated by its parent company, Associated British Foods, following the second wave of store closures this autumn. Previously, the fashion group assumed a loss of sales of 375 million pound (415 million euro).

 

For the full financial year 2020/21 the budget chain still expects to end with both profit and revenue growth. Last year, which ended on 12 September, Primark closed with a profit of 362 million pound (400 million euro), despite the initial lockdown and the retailer's lack of e-commerce sales.

 

Record breaking

Even after the second wave, the chain is quickly picking up the thread again, sees John Bason, head of finance at AB Foods: sales are already "phenomenal" in the core markets Ireland, England, France and Belgium, where the stores opened their doors again last week. For two days in a row, the stores in home market Ireland have been pulverising their day records since the reopening, says Bason to Reuters.

 

“It’s very clear that our trading before the lockdown and now our trading these first few days after lockdown is way higher than we had previously expected,” said the financial top executive. He thinks the chain will have a strong run-up to Christmas and that of the 430 million pound of corona damage, not much will be left in the end.