Primark sees comparable sales drop

Irish fashion discounter Primark achieved a 4.2 % turnover increase in the past financial year as a result of building additional retail space. On a comparable basis however, sales fell by 2.0 %.

Additional retail space

In the split financial year, which ended on 14 September, Primark achieved a 4.2 % turnover increase to 7.79 billion pounds (9 billion euros). This increase in turnover is the result of additional retail space: fourteen more stores were opened than there were stores closed (one of which was in Belgium), representing an additional 83,000 sqm of sales area.

The company did succeed in improving its the profit margin from 11.3 % to 11.7 %, resulting in an operating profit of 913 million pounds (just over 1 billion euros). Last year, the profit amounted to 843 million pounds. In the United Kingdom, revenues increased by 2.5 %, but there was a drop of 1.0 % on a comparable basis. In Continental Europe sales went up by 4.8 % as results in France, Spain and Italy were successful; but sales in Germany fell significantly. The net retail space in Europe increased by 8 %.

Next year, Primark plans to open nineteen new stores and further expand its sales area by approximately 93,000 sqm. New stores will open in France and Spain in particular, while Poland will get its first Primark store. In the coming year, the chain anticipates slightly declining profit margins.