Primark sales decline in the UK as key markets in Europe and the US deliver growth
Primark has seen its first half sales fall by 4% in the UK and Ireland despite a good like-for-like performance over the Christmas period.
Owner Associated British Foods (ABF) said the decline at the fashion retailer was a reflection of cautious consumer sentiment in the six months to 1 March and reduced autumn purchasing due to mild weather. It added that shopping activity within elements of Primark’s UK and Ireland customer base was particularly weak which resulted in a small reduction in market share.
ABF said Primark’s click & collect service is now building momentum and is available in 158 shops with plans to reach 187 British stores by the end of June.
Meanwhile, the retailer’s sales grew by 1% to £4.5 billion overall following a good performance in its key growth markets of the US, Spain, Portugal, France, Italy, and Central and Eastern Europe Adjusted operating profit climbed by 8% to £540 million with adjusted operating margin increasing to 12.1%.
George Weston, ABF chief executive, said: “Primark delivered good growth in Europe and the US, with continued consumer caution in the UK. Primark’s profit and margin delivery was strong and our low-cost operating model is working well. Our focus remains on sharp execution of our key growth initiatives across product, brand, digital and new market entry.”
Looking ahead, ABF said Primark will continue to target a low-single digit sales uplift for the full year with the performance of growth markets in Europe and the US offset by weaker sales in the UK and Ireland.
It added: “While we continue to assume our trading in the UK remains challenging in H2 2025, there have been some early signs of improvement in recent weeks.”
