Member Article

Primark anticipates "exceptional" growth

Retail sales at Primark have been “exceptionally strong” according to a trading update released by parent company, Associated British Foods (ABF).

Ahead of its interim results which will be posted in April, ABF said it expects a 23% rise in sales against the same period last year.

The firm also said Primark’s profit margin was significantly higher that the same period last year as a result of lower cotton prices and improved trading conditions.

New store openings were particularly prevalent in the period ending 2 March 2013, with a 0.7m sq ft increase of selling space since the end of the last financial year.

Primark said it expects to have 257 stores and 8.9m sq ft of selling space when it enters the close period for its interim results.

Peter Saville, partner at Zolfo Cooper, commented: “Primark’s stellar success flies in the face of conventional wisdom.

“Whilst the rest of the retail world is obsessing over online selling and multichannel strategies, Primark is powering ahead despite it having no online business at all.

“Primark has become much more fashion-focussed, with fast-turning stock and a nod towards the latest trends.

“As a result, the company has been able to offer low-cost fast fashion at a time when most consumers are keeping a careful eye on their spending.”

This was posted in Bdaily's Members' News section by Miranda Dobson .