Primark sales plunged significantly within the UK within the added to Christmas as “cautious” consumers reduce down their excessive street investing.
Like for like gross sales on the low cost price type chain had been down 6.4% within the UK over the 16 weeks to 4 January with the best decreases in October and November previous to a pick-up in December, its mothers and pop enterprise acknowledged right now in a buying and selling improve. Primark’s market share dropped considerably to six.8%.
In its declaration Associated British Foods (ABF) acknowledged: “During the interval, the general clothes retail market within the UK declined. Trading exercise inside components of our shopper base was weak because of cautious shopper sentiment and a scarcity of seasonal buying catalyst given the gentle autumn climate. “
Many retailers have reported a marked fall in shopper confidence within the run as much as and after the October Budget when Chancellor Rachel Reeves repeatedly spoke of her dire financial inheritance from the Tories.
However buying and selling picked up barely within the ultimate weeks of buying and selling earlier than Christmas when the UK shops, together with two flagships on Oxford Street, returned to progress. UK and Ireland account for 45% of Primark’s complete gross sales.
Overall Primark gross sales grew 2% to £3.36 billion at fixed currencies with sturdy progress in Spain, Portugal, France, Italy, Central and Eastern Europe and the US .
ABF stated it noticed “good growth” from its Rita Ora, Paula Echevarr ía and Kem collections.
But usually in womenswear, “our performance was most impacted by weaker sales in cold-weather and seasonal clothing, however, we saw strong sales of performance, leisure and nightwear.”
Across the ABF group abruptly gross sales dropped 2.2% to ₤ 6.73 billion over the 16 week length.
The enterprise included: “Primark is now concentrating on low-single digit gross sales progress in 2025. This can be pushed by our retailer rollout programme in progress markets in Europe and the US, which is on monitor to contribute round 4% to complete Primark gross sales progress, offset by the weaker like-for-like gross sales within the UK and Ireland in the course of 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.”
