Good news for Primark shoppers! The retail giant’s sales have picked up despite consumers being a bit wary during these uncertain times. Over the half-year up to mid-September, sales have grown by 1%, thanks in part to popular womenswear and some lovely weather boosting foot traffic in the UK.
While like-for-like sales dipped slightly by about 2%, Primark’s exciting expansion plans are balancing things out. They’ve opened 15 new stores, including two in the UK. Across the pond, Primark is seeing strong sales in the US, although Europe is lagging a bit due to a quieter shopping scene.
George Weston, the boss of Primark’s parent company, ABF, shared his optimism despite challenges like inflation and geopolitical worries weighing on shoppers’ minds. Encouragingly, Primark is holding prices steady even as costs rise.
On the food side of things, however, ABF is passing on some of the 5% cost inflation to customers with brands like Ryvita and Twinings. Despite this, grocery sales have remained steady compared to last year.
ABF is working on turning around its Allied Bakeries business and recently made a move by buying Hovis Group. Meanwhile, the sugar division is facing challenges, with a notable expected loss partly due to the closure of their Vivergo bioethanol plant in East Yorkshire after a deal with the Government fell through.
Though times are challenging, Primark’s sales improvements and new store openings offer a glimmer of hope for the high street. What do you think about this retail turnaround? Are you excited to hit the new Primark locations? Let us know!