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Primark UK sales dip as ‘cautious’ shoppers weigh on trading

Primark UK sales dip as ‘cautious’ shoppers weigh on trading

Primark’s UK and Ireland sales declined by 4% in the 16 weeks to 4 January 2025, as cautious consumer sentiment and unseasonably mild autumn weather dampened trading. Like-for-like sales in the region fell by 6%, with the retailer’s market share dipping slightly to 6.8%.

The drop in sales in its largest market, which accounts for approximately 45% of the retailer’s revenue, was offset by stronger performances in its growth markets.

Sales in Spain, Portugal, France, Italy, Central and Eastern Europe, and the US all increased, with the US recording a 17% rise and Central and Eastern Europe growing by 22%.

The overall UK clothing retail market also experienced a downturn during the period, with Primark’s performance particularly impacted by weaker sales in October and November.

However, the business saw stronger sales and like-for-like growth during December’s key Christmas trading weeks.

Primark reported good performances in menswear and kidswear, alongside strong sales in its performance, leisure, and nightwear ranges. Collections by Rita Ora, Paula Echevarría, and Kem also performed well, alongside licensed products

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The retailer continued to expand its click & collect service in the UK during the period, which is now available in 113 stores, helping to boost online participation and customer engagement.

Across its international growth markets, Primark opened eight new stores, relocated two, and extended one. These new openings contributed 4% to total sales growth during the period. The retailer also continued with its store refurbishment programme in a bid to enhance its in-store experience globally.

Looking ahead, its owner Associated British Foods (ABF) said: “Primark is now targeting low-single digit sales growth in 2025.”

This will be driven by its store rollout programme in growth markets in Europe and the US, which is on track to contribute around 4% to total Primark sales growth, offset by the weaker like-for-like sales in the UK and Ireland during the autumn.

“Despite the market conditions in the UK and Ireland, we remain confident in the Primark proposition and continue to focus on initiatives across product, digital, and brand to drive underlying growth,” said ABF.

Primark also expects its adjusted operating profit margin to remain broadly in line with last year’s level, as gross margins have continued to improve and good cost management offsets inflation and increased investment.

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