Primark warns of additional £220m sales loss due to Tier 4 closures
On 31 December an additional 20 million people were placed under the toughest restrictions
Primark has warned that it now expects to incur an additional loss of £220m in sales due to more areas of the country entering stricter Tier 4 restrictions.
In a short Covid-19 trading update, Primark’s parent company Associated British Foods revealed that as of 1 January, 253 Primark stores will be temporarily closed, representing 64% of its total retail selling space.
As such, it now expects an estimated loss of sales of around £650m up from the £430m previously announced on 4 December.
It comes as an additional 20 million people were placed under toughest restrictions on 31 December, with The Midlands, North East, parts of the North West and parts of the South West moving into Tier 4.
Under the restrictions, non-essential shops must close, and people are limited to meeting in a public outdoor place with their household, or one other person.
Prior to the Tier 4 announcement, ABF chairman Michael McLintock previously said he still expects Primark sales and profit to be higher than the previous financial year.
He said: “Notwithstanding the currently announced periods of restriction, we continue to expect Primark sales and profit to be higher this financial year compared to last. We will continue to expand retail selling space.
“Following the UK’s exit from the EU, our businesses have completed all practical preparations for the end of the transition period this month and contingency plans are in place should our businesses experience some disruption at that time.”
