Primark clothes to become pricier
Fashion retailer Primark has warned it will increase prices on its autumn and winter collection as costs go up for businesses around the world.
The budget fashion chain said it would make “selective” rises in the range, having avoided most pressures from inflation until now because global exchange rates fell in its favour.
But AB Foods, which owns Primark and Twinings and is also a major sugar producer, said the US dollar is strengthening and inflation is soaring, which will force the changes.
Chief executive George Weston said: “Inflationary pressures are such that we are unable to offset them all with cost savings, and so Primark will implement selective price increases across some of the autumn/winter stock.
“However, we are committed to ensuring our price leadership and everyday affordability, especially in this environment of greater economic uncertainty.”
Despite price rises, Primark expects to see its sales increase because it is opening more stores, expanding its so-called selling space by 10% compared with the end of the 2019 financial year.
“As a consequence, total sales for Primark in the second half are anticipated to be ahead of the second half of the 2019 financial year, which was pre-Covid,” AB Foods said.
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