Primark sales up but owner “cautious” about this year’s growth

Primark-owner Associated British Foods has reported a 10% rise in first-quarter sales but says January’s VAT rise and high commodity costs mean further growth this year could be limited.


First-quarter results for the 16 weeks to 8 January saw Primark sales up 12% on last year which it attributes to its six new UK store openings and “good” like-for-like sales growth.

The group, which also markets Silver Spoon sugar, Twinings tea and Ovaltine, says its 214 Primark stores traded well despite adverse weather in December, with revenue at the clothing stores up 12%.

December trading was dented at several other high street stores as snow impacted on sales. Dixons, Halfords and Home Retail Group, which owns Argos, all reported falling sales as shoppers stayed at home rather than heading to the high street.

Associated British Foods says it will have a cautious outlook on the coming year and warns that Primark margins will be hit by high cotton prices as it plans not to pass the extra costs on to its customers.

The group’s food and drink brands saw revenue up 9% but prices are expected to rise to cover the surging costs of commodities such as wheat, corn oil and spices.

The group says in its trading update: “Although further growth is expected for the coming year, this will be moderated by the eventual impact of the adverse weather conditions on UK sugar production.”



The Secret Marketer on the misuse of statistics

David Coveney

I got a great new business mailing this week. It was from a media owner trying to flog me a package of poster sites. The case study was compelling. A brand that had used this media had experienced unprecedented success. The sales uplifts were truly impressive by anybody’s standards. Stellar results. Who wouldn’t be sold […]


Mapping value across the customer journey

Will Cooper

More and more brands are using attribution modelling to find out the true value of every stage of a customer’s purchase journey. But as the picture gets clearer, new challenges are emerging – such as how to split the money fairly.


ASA launches awareness campaign

Russell Parsons

The Advertising Standards Authority has launched its first above-the-line marketing campaign in five years today (17 January) to highlight that it will be regulating marketing communications on company websites from 1 March.


    Leave a comment