THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Primark sees first half sales rise

Primark owner Associated British Foods has reported that the fashion retailer’s first half sales were 7% ahead of the same period last year at constant currency.

GENERAL MERCHANDISE

Primark sees first half sales rise

Primark owner Associated British Foods has reported that the fashion retailer’s first half sales were 7% ahead of the same period last year at constant currency.

In the 24 weeks to 27 February, sales rose by 5% at actual exchange rates to £2.6 billion with trade driven by increased retail selling space.

Meanwhile, Primark’s operating profit dropped by 3% to £322 million in the period.

Following a strong performance at the start of the financial year, trading was weaker in the weeks leading up to and over Christmas, as a result of unseasonably warm weather across northern Europe. This resulted in like-for-like sales for the first half being less than 1% below last year.

ABF said Primark’s stores in France delivered a strong like-for-like performance despite the very high sales densities achieved in their first year of trading last year. As expected, the impact of new store openings on the like-for-like sales in existing stores in Germany and the Netherlands eased.

The company said early trading at Primark’s two stores in the US had been “encouraging”, with positive customer feedback.

At 27 February 2016, 299 stores were trading from 11.5 million square feet of retail selling space.

Primark opened a net six new stores in the period including a flagship, 133,000 square foot store on Gran Via in central Madrid in October, and a second store in the US at the King of Prussia mall in Pennsylvania, at the end of November.

The number of openings will be greater in the second half, with a further 0.3 million square feet in seven new stores already opened since the half year including Cagnes-sur-Mer, near Nice, and Toulon in France. The remaining openings will be weighted towards the end of the second half.

In the US, six stores are scheduled to open later this year and there are plans to open a 70,000 square foot store in the American Dream shopping mall in New Jersey in 2017. This will bring the total number of stores in the US to nine.

Across the wider ABF group, which includes sugar, ingredients, grocery and agriculture businesses, adjusted pre-tax profit increased by 4% to £466 million.

George Weston, ABF chief executive, said: "These results demonstrate underlying progress for all of our businesses in the period despite currency. Good buying and selling space expansion continued at Primark, cost reduction and performance improvements contributed to a better result at sugar, profits were well ahead at ingredients, and profit margins improved at grocery and agriculture."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019