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Primark has lowered its sales outlook for 2025 after the UK reported weak sales amid a “challenging retail environment” over the autumn period.
In the UK and Ireland, which accounted for 45% of trading, like-for-like sales fell by 6% in the 16 weeks to 4 January 2025. In the UK specifically, like-for-like sales were down by 6.4% following a decline in the overall clothing retail market in the UK.
According to ABF, the owner of Primark, trading activity was weak as a result of “cautious consumer sentiment” and a lack of seasonal purchasing in light of the mild autumn weather. Womenswear was most impacted by weaker sales in cold-weather and seasonal clothing, though leisure and nightwear reported a stronger performance.
Overall, Primark’s total like-for-like sales fell by 1.9%, reflecting the lower sales in the UK and Ireland, with Christmas trading “more than offset” by the weaker autumn period.
Nonetheless, ABF noted there was “good growth” across key growth markets in Spain, Portugal, France, Italy, Central and Eastern Europe and the US.
It added that good progress was made with its store rollout programme in Europe and the US, which contributed to around 4% of total sales growth in the period. It opened eight new stores, extended one store, right-sized two stores and relocated two stores.
However, in light of the weaker UK trading, Primark said it is now targeting low-single digit sales growth in 2025.
It said: “This will be driven by our store rollout programme in growth markets in Europe and the US, which is on track to contribute around 4% to total Primark sales growth, offset by the weaker like-for-like sales in the UK and Ireland during the autumn.
“Despite the market conditions in the UK and Ireland, we remain confident in the Primark proposition and continue to focus on initiatives across product, digital and brand to drive underlying growth.”
