Primark UK sales decline amidst ‘challenging retail environment’

Like-for-like sales at Primark UK dropped by six per cent across the four months to 4 January.

The budget clothing retailer said that that its sales performance aligned with an overall UK retail market decline, with trading activity weaker within parts of its customer base as a result of "cautious consumer sentiment" and less people buying warmer clothing due to the mild Autumn weather.

Across both the UK and Ireland, which accounted for 45 per cent of total sales, like-for-like sales were also down six per cent.

In womenswear, the company's performance was most impacted by weaker sales in cold-weather and seasonal clothing, while there were stronger sales across performance, leisure and nightwear.

While the trading period was marked by a weak October and November, it was followed by stronger sales and like-for-like growth in December over the festive period.

The company's latest results come after Primark invested more than £100 million in its UK stores last year.

Primark also planned some of its "biggest ever" store extensions across the country, including at London’s Westfield Stratford store where it will almost double in size, making it the second largest Primark in the capital.

Additionally, in September the company revealed plans to expand its Click & Collect service to 54 additional stores across the UK in the Autumn. The total number of stores offering the service is now 113.

The retailer said that it is now targeting low single digital sales growth in 2025, driven by its store rollout programme in growth markets in Europe and the US.

It went on to say that these markets are on track to contribute around four per cent of total Primark sales growth, offset by the weaker sales in the UK and Ireland.

“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,” wrote Primark-owner Associated British Foods (ABF). “We continue to expect Primark’s adjusted operating profit margin to remain broadly in line with last year’s level, as gross margins have continued to improve and good cost management offsets inflation and the step-up in investment.”



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