Primark sells 12 % more in first quarter

Primark sells 12 % more in first quarter

Irish fashion chain Primark has had excellent holiday sales: ABF’s fashion section added 12 % to its quarter’s turnover (taking exchange rate fluctuations into consideration).

Fast-paced expansion

ABF believes there are several reasons for the growth, including an excellent Christmas sales period, an equally strong turnover growth and a large number of new stores that have all started very well. Primark has opened several new stores in the past quarter, with 55,740 sqm of additional store space in three months. There were 268 Primark stores on 4 January 2014, totalling 891,840 sqm of store space.

 

We opened 14 new stores in the period including our first in France. […] In Spain we opened five new stores and closed the smaller of our two stores in La Coruña, bringing the total there to 39”, the company stated. Great Britain (with 3 new stores), the Netherlands (2 new stores), Germany, Austria and Portugal (each with 1 new store) also added to the number of new stores.

 

More profit and higher margins

Primark will continue down this path in the upcoming months: France will add four more stores (three in Paris and one in Dijon), Germany will get two (Cologne and a second one in Berlin) and Great Britain will get three more. These openings will add 46,000 sqm of store space.

 

“Building upon the like-for-like growth already achieved, and with the further store expansion planned for the remainder of the year, Primark’s profit will be well ahead of last year with a higher margin than expected”, Primark has said. British concern ABF is uplifted by Primark’s success, as its food (mainly sugar) sectors are not performing as well.

 

 

 

 

(Translated by Gary Peeters)

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