Primark’s like-for-like sales slide

Like-for-like sales at Primark saw a 2.1% decline in its financial results to the year ending 15 September 2018.

Despite this, the budget fashion chain saw revenue increase by 6% to £7.47bn. This was attributed to an increase in selling space as this year, the company expanded its portfolio to 360 stores from last year’s 345. This saw its selling space grow from 13.9 million sq ft to 14.8 million sq ft.

Primark’s parent company Associated British Foods (ABF) said the retailer performed well in the UK market with a sales rise of 5.3% and 1.2% like-for-like sales growth. The company said this was due to Primark’s share of the clothing market increasing “significantly”.

Its sales in the Eurozone were 4.7% ahead of last year while its like-for-like sales dropped by 4.7% – ABF attributed this to unseasonable weather and “soft trading in a weak German market”. ABF was “pleased” with its American performance in the second half of the year, which saw it open its ninth store in Brooklyn, New York in July.

The retailer, which does not sell online, said its social media continued to grow with its followers up to nearly 13 million from the previous year’s figure of 10 million.

For 2019, ABF plans to add 1 million sq ft to Primark’s selling space and open 15 new stores.