Primark sales are still under pressure in Ireland and the United Kingdom, but the fashion discounter still achieved growth elsewhere – mainly thanks to expansion of its store network.
Limited growth in sight
The Irish chain had to admit to weak results in the United Kingdom and Ireland last year, due to cautious consumers and disappointing weather conditions. This has not improved in the past quarter: sales on the British Isles fell by 4 % in the 24 weeks to 1 March. Market share also fell slightly.
However, Primark managed to compensate for this decline by better performances in its international growth markets: sales in the United States rose by 17 % and in Central and Eastern Europe even by 22 %. Total sales therefore rose by 1% to 4.5 billion pounds (5.3 billion euros).
Parent company Associated British Foods expects “limited single-digit” sales growth for the current financial year, mainly thanks to the further expansion of its store network in Europe and the US. In the UK market, the retailer is further expanding the click&collect service to 158 stores. The company is also still looking for a successor to CEO Paul Marchant, who had to resign after allegations of inappropriate behaviour towards a colleague.
