Primark boss says firm wants to keep prices the same 'for another eight or nine years'

However, it indicated trading has improved in recent weeks on the back of better weather conditions, helping to boost sales of spring and summer clothing.

George Weston, chief executive of ABF, said that it is witnessing “significant” increases in labour costs after increases to national insurance contributions and wage rises but plans to keep prices flat.

“We went nine years without moving prices before inflation forced us to change pricing a couple of years ago, but since then we have brought down the price of kids’ clothing,” he said.

“We haven’t moved any more prices and are absolutely not planning to move any more.

“Hopefully we can keep them flat for another eight or nine years.

“There has been some benefit from weakness in the US dollar and benign cotton costs, but there are labour cost rises which we are choosing to absorb.”

Sales across ABF’s retail arm, which is predominantly the Primark brand, improved by 1 per cent to £4.5 billion over the 24 weeks to March 1.

However, the company said this came as growth in Europe and the US offset “weaker sales” in the UK and Ireland, where it has seen caution among consumers.

Mr Weston added that the business in the UK has held off competition from Asia-based rivals including Shein and Temu.

However, he welcomed the Government’s review of a tax rule that allows small parcels to enter the UK duty-free, which has been used by the overseas online retailers.

The billionaire businessman said the rule, which means international packages worth less than £135 can be sent without import taxes, was “wrong” and created an unfair advantage.

It came as ABF told shareholders that pre-tax profits slid by 21 per cent to £692 million for the 24 weeks to March 1, as it highlighted weakness in its sugar business.

Meanwhile, revenues were 2 per cent lower at £9.5 billion for the period.

Shares in the company were down eight per cent in early Tuesday trading.

Mr Weston 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.”