Primark UK sales fall 4% in H1 as US and Europe boost growth
In both the UK and Ireland, sales fell by 4% despite good like-for-like sales growth over Christmas, as the UK clothing retail market struggled over the period
Primark’s sales grew by 1% to £4.47bn in the first half of the year, with adjusted operating profit up 8% to £540m, as weaker UK and Ireland sales were offset by growth across the US and Europe.In both the UK and Ireland, sales fell by 4% despite good like-for-like sales growth over Christmas, as the UK clothing retail market struggled over the period. This reflected “cautious” consumer sentiment as well as a lack of seasonal purchasing in autumn due to mild weather.
Shopping activity across Primark’s UK customer base was “particularly weak” and as a result Primark’s market share fell from 6.9% to 6.7%.
Nonetheless, its online participation through Click and Collect is “building momentum”, with more customer awareness and product availability, according to parent company ABF. The service is now available in 158 stores and will be in all 187 British stores by the end of June 2025.
Primark also saw a sales uplift from the active management of its UK store estate, including store relocations, extensions, new store openings and an ongoing store refurbishment programme.
Over the half-year period, its key growth markets in the US, Spain, Portugal, France, Italy, and Central and Eastern Europe, helped deliver growth, particularly boosted by its store rollout programme which contributed 4% to total sales growth in H1.
In the US, sales soared by 17%, with recent store openings positively contributing to overall sales density in the US. In Spain and Portugal, sales rose by 8%, reflecting good underlying growth in both markets and a strong contribution from recently opened stores. In France and Italy, sales grew 4%, again driven by recent store openings.
It comes as Primark invested £212m in capital projects over the period, including the new store openings in the US and Europe. It opened a total of eight new stores, extended one store, right-sized two stores and relocated two stores. On 1 March 2025, it was trading from 459 stores across 17 markets, with 19.1m sq ft of selling space.
Looking ahead, ABF said Primark has a “clear roadmap” for new store rollouts in its growth markets.
George Weston, CEO of Associated British Foods, said: “Primark delivered good growth in Europe and the US, with continued consumer caution in the UK. Primark’s profit and margin delivery was strong and our low-cost operating model is working well. Our focus remains on sharp execution of our key growth initiatives across product, brand, digital and new market entry.”
