Primark sales plunged drastically within the UK within the added to Christmas as “cautious” patrons reduce down their excessive highway investing.
Like for like gross sales on the low cost charge model chain have 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 pa enterprise acknowledged as we speak 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 on account of cautious client sentiment and an absence of seasonal buying catalyst given the delicate autumn climate. “
Many retailers have reported a marked fall in client 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 last weeks of buying and selling earlier than Christmas when the UK shops, together with two flagships on Oxford Street, returned to development. UK and Ireland account for 45% of Primark’s whole gross sales.
Overall Primark gross sales grew 2% to £3.36 billion at fixed currencies with robust development 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 workforce suddenly 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 development in 2025. This will likely be pushed by our retailer rollout programme in development markets in Europe and the US, which is on monitor to contribute round 4% to whole Primark gross sales development, offset by the weaker like-for-like gross sales within the UK and Ireland throughout 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.”
