Primark warns of £375m lockdown hit
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The parent company of Primark has warned that the retailer will face a £375m hit to sales, in an update issued ahead of the nationwide lockdown that begins this week.
As of today (2 November), all Primark stores in the Republic of Ireland, France, Belgium, Wales, Catalonia in Spain and Slovenia have temporarily closed, representing 19% of its total retail selling space.
In light of the UK Government announcing its intention to close non-essential shops in England from 5 November to 2 December, 57% of its total selling space will be temporarily closed from the start of lockdown.
The estimated £375m loss comes as a result of closures across all aforementioned markets.
In addition, trading hours will be restricted in a “number” of other markets, while uncertainty about further temporary store closures in the short-term remains.
Associated British Foods (ABF) said it is now implementing operational plans developed to “manage the consequences of these closures and appropriate action will be taken to reduce operating costs”.
It added that all orders placed with its suppliers will be honoured.
Its latest update comes just ahead of its annual results for the year ended 12 September 2020, which will be released tomorrow (3 November).
