Primark's like-for-like turnover drops for the first time in 12 years

Irish fashion chain Primark has seen its like-for-like turnover drop for the first time in twelve years, which its parent company Associated British Foods blamed on the warm weather during the holidays.

Too warm in winter, too cold around Easter

Over the first six months of its fiscal year, Primark’s turnover grew 7 % to 2.67 billion pounds (3.4 billion euro), mainly because of its store network expansion. On a like-for-like basis, Primark’s turnover dropped 1 %: the first drop in the past 12 years. According to the company, the fiscal year started out well, but sales lagged in the second half of the year because of the warm weather. The Easter period failed to remedy that, as it was too cold to entice people to buy clothing for the summer.

Primark points out that its like-for-like results would have been much better if the results from Netherlands and Germany are ignored, because in both countries, new store openings kept customers away from the older stores.

By the end of February, Primark had 299 stores worldwide and 1.1 million sqm in store space. It opened its first Italian store and the first two stores in the United States, where the preliminary results are positive. That has prompted the company to expand even more in the US, with a target of six new stores this year. For next year, New Jersey can already expect the arrival of a new Primark as well.