Primark sales ramp up over last eight weeks

The retailer’s parent group Associated British Foods said Primark’s half year sales were expected to rise by 16 per cent on a constant currency basis in the six months to February 28. This is up from the 15 per cent reported for the first 16 weeks of the period.

A four per cent rise in cumulative sales at stores open over a year in the last eight weeks offset decline in the first 16 weeks, bringing sales level with the previous year, the group said.

Finance director John Bason said Primark’s improved performance reflected an 11 per cent increase in retail selling space, very high sales densities in new stores, and the recent sharp fall in petrol prices.

“Normal, ordinary families, the people who shop in Primark, suddenly every week if they fill their [car] tank with petrol have got £20 more to spend,” he said.

“Whether it all comes to Primark is a moot point, but it’s got to help.”

Associated British Foods reiterated its annual earnings expectations, as growth at Primark and progress at its grocery, ingredients and agriculture businesses are help to offset continued weakness in its sugar operation.

“In terms of the decline in the sugar price, the worst is definitely over,” Mr Bason said.

The group’s shares climbed 29 per cent following the results.