Over the past quarter, Primark's turnover grew 11 % at level exchange rates and even 22 % at the actual exchange rates, particularly thanks to an increased number of stores.
New stores are hindrance to like-for-like growth
Parent company Associated British Foods informed Primark's performance in the United Kingdom was good, with growth for its like-for-like turnover and market share. Looking at the entire chain, like-for-like turnover is being slowed by German and Dutch drops, even though these were lower than a year ago. The Dutch drop is because of its rapid store space growth, which means that new stores steal away turnover from stores that have been open for more than 12 months.
Primark will continue to focus on expansion in 2017: since the start of its fiscal year, it added 75,000 sqm of store space, with new stores in Paris, Hamburg and Amsterdam. By the end of its quarter (7 January), it had 328 stores, including 6 in the United States. For its current fiscal year, it will add another 120,000 sqm in floor space.