Primark like-for-like sales fall 2.2% in ‘challenging’ retail environment
Primark’s like-for-like sales fell by 2.2% in its third quarter, as the retail environment remained challenging across most of its markets. On a total basis, sales rose by 3%.
In the UK, like-for-like sales were broadly flat, while total sales were up 1% after a strong start to spring/summer trading in March was followed by weaker sales in April and May due to the impact of conflict in the Middle East.
Primark owner Associated British Foods (ABF) said the retailer benefited from a range of marketing initiatives during the period, particularly its ‘Shockingly Chic’ and ‘The Get Away’ campaigns, as well as increased digital engagement, including the launch of a new app.
Subscribe to TRBIn continental Europe, where consumer confidence remained weak, like-for-like sales dropped by 3.6%, while total sales edged down 1%.
Trading in the US was mixed, but sales climbed by 16% following three new store openings, bringing the total number of stores in the country to 41.
ABF said Primark’s womenswear outperformed other departments as the retailer continued to improve product quality and fit, and launched new ranges such as ‘By Coleen’.
George Weston, ABF chief executive, said: “The group delivered a resilient trading performance in the third quarter.
“While the retail environment remained challenging in most markets, Primark continued to strengthen its customer proposition, including new product launches, a sharper focus on price and increased investment in marketing, particularly digital.”
Despite the challenging markets, Primark is continuing to expect to deliver an adjusted operating profit margin for the full year of around 10%.
