Associated British Foods (ABF), the parent company of Primark, reported improving sales performance for the discount retailer despite ongoing "consumer caution" affecting the retail sector. The fashion chain has recovered ground in its key UK and Ireland markets over recent months.
Primark sales are expected to have grown by one per cent over the half-year period ending September 13th. While like-for-like sales dropped by around two per cent, this decline was offset by the company's aggressive expansion strategy, which saw 15 new stores opened during the period, including two in the UK.
Regional performance varies
The retailer experienced strong sales growth in the United States market, demonstrating the brand's continued appeal to American consumers. However, European operations faced headwinds due to what the company described as a "more subdued consumer environment" across continental markets.
UK stores benefited from improved womenswear sales and more favourable weather conditions, which helped drive customer footfall and purchases. The recovery in these core markets provided a boost to overall performance despite broader economic uncertainties.
Broader group performance
George Weston, chief executive of ABF, acknowledged the difficult trading environment facing retailers. "I'm pleased with how the group has performed in the second half of our financial year in what continues to be a challenging environment, characterised by consumer caution, geopolitical uncertainty and inflation," he said.
Beyond Primark, ABF's food businesses also delivered stable results during the period. Weston confirmed that "overall trading in the second half was in line with our expectations" across the group's diversified food operations, highlighting the company's performance beyond its retail arm.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
