Budget fashion retailer Primark expects a 17 percent rise in sales for its full financial year; according to its parent company Associated British Foods. The significant increase is due to the retailer continuing to increase its selling space
and like-for-like sales growth, which is expected to be 3 percent in the 52 weeks to September 15.
a pre-close statement, ABF said: “Trading this summer in the UK was particularly strong and sales in continental Europe remained buoyant.
“Trading in newly opened stores exceeded expectations and the opening of the new store in Berlin in July saw our most successful first day’s sales ever. Early sales of the autumn/winter range have been encouraging.”
ABF also added that Primark’s operating margins in the first half were lower than last year, reflecting the retailer’s decision to absorb the high cotton costs, rather than passing them on to customers.
Investment in new stores for Primark also increased in the second half and will be ahead of last year for the year as a whole. By the end of the financial year, the group expects to have opened a total of 19 stores, seven of which were in the second half, bringing the total of Primark stores to 242 and 8.2 million square feet.
Its biggest launch will be just after the year end, when the retailer will open its second store on London’s Oxford Street on September 20. The four floor store spans across 80,000 square feet and will launch just after London Fashion Week.