Discount retailer Primark continues to buck the downward trend on the high street as consumers become more cost conscious, according to a trading update by parent group Associated British Foods. Its sales and profit are expected to come in ahead of 2007 results.
AB Foods says that full year profits remained in line with expectations after a good performance at Primark, offsetting declining profits at its sugar operations.
The retailer, which makes up about a third of AB Foods profit, is now expected to see second half like-for-like sales growth of 2%, ahead of its full year results in November.
The group added that the sales and profit at Primark will be “well ahead of last year”. AB Foods is expanding Primark in Britain, with more stores in Spain and is also looking at options to beef up the retailer’s UK and Irish warehouse capacity as demand increases.
The retailer was under attack this summer following revelations that it was sourcing clothes from factories which used child labour in India. Primark sacked three of its suppliers as a result.