Primark posts £430m sales hit amid second lockdown

Primark was hit with a £430m sales loss following international lockdowns this autumn, according to Associated British Foods (ABF). 

Primark stores in the group’s major markets, including England, the Republic of Ireland, France and Belgium reopened in the last week, however, with ABF noting that sales have been “very strong” since reopening. 

It has now extended the opening hours during the festive season in most of its stores in the Republic of Ireland and England to “cater for the anticipated higher customer demand and to help ensure a safer environment by spreading shopping hours over a longer period”.

Across some markets, however, trading hours and store occupancy levels continue to be restricted, while the group added there was uncertainty about further temporary store closures in the short-term.

Across its markets, 34 stores currently remain temporarily closed, including all stores in Northern Ireland and Austria.

These closures represent 7% of its total retail selling space compared to 62% when the highest number of stores were closed in November.

 At the group’s AGM today, chairman of ABF, Michael McLintock, will say: “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.”