Primark defies high street strife with 6% sales boost

Budget fashion retailer Primark has reported a 6% increase in sales in the 40 weeks to 23 June compared with the previous year.

Associated British Foods (ABF), which owns Primark, said growth was driven by increased retail selling space in the UK and abroad, and as a result of “better trading across the eurozone”, with sales from its first four Italy stores “continuing to be very strong”.

The retailer also reported a 800,000 sq ft increase in selling space at the start of the financial year, with 358 stores currently trading from 14.7 million sq ft of retail space. Seven new stores opened in Germany, France, Belgium, Spain, Netherlands, Burnley in the UK and in the Westfield London shopping centre at White City.

In a statement primark said: “We expect to add a further 0.1 million sq ft of selling space by the end of this financial year, with a new store in Brooklyn, our ninth store in the US, and a relocation to a larger store at Islazul Madrid. The opening of new stores at Toulouse in France and Ingolstadt in Germany have been delayed and are now expected early in the next financial year.

“As a result of these delays and changes in selling space, the increase in net retail selling space for this financial year is now expected to be 0.9 million sq ft.”