Primark benefits from weaker British economy

Irish fashion chain Primark takes full advantage of the weak British economy, which prompted its parent company AB Foods to adjust its full-year forecast. The chain will also continue its expansion plans.

Weak pound

AB Foods forecasts Primark’s full-year (ending on 16 September) turnover to grow 13 % prior to exchange rate fluctuations. Including those, turnover could even grow more than 20 %. A large part of that turnover growth is thanks to new store openings: in the past fiscal year, Primark opened thirty stores, a trend that will continue into the new fiscal year with at least nineteen store openings. Germany, France and the United Kingdom will be the focal point.

The company is also one of the few fashion brands to take advantage of the brexit and the effect it had on the British economy. Plenty of consumers are now conscious about their expenses and turn their attention to discounters. AB Foods expects the UK full-year like-for-like turnover to grow 4 %. AB Foods also generates a lot of its profit abroad and the weak pound leaves more of that intact now.