Home Breaking News Primark on track to top their profits after surge in sales

Primark on track to top their profits after surge in sales

by LLB Finance Reporter
7th Sep 20 10:56 am

Associated British Foods (ABF) who own Primark have said a surge in summer sales has placed the firm on track to top their profits forecast.

ABF told investors on Monday that Primark sales are “reassuring and encouraging” since stores reopened in June.

Trading in their food divisions was also better than predicted in the fourth quarter. ABF said their stores traded “strongly” in the quarter as their “value-for-money offering and a welcoming and safe store environment” to their customers.

“Pent-up demand” saw customers with larger transactions, and Primark expect to report around £2bn in sales.

ABF chief finance officer John Bason told the PA news agency, “We are encouraged that we’ve seen broadly-based progress, but I think the particularly strong takeaway has been the power of the Primark brand.

“Having been closed for three months obviously caused pressure, but all over the country we’ve seen sales above what we were seeing last year.

“We saw big baskets in June but recent sales haven’t been due to pent-up demand and that’s really encouraging. July was great and ‘back to school’ meant we saw a terrific end to August.”

George Charles spokesperson for www.MoneySavingHeroes.co.uk added, “Primark are the exception of the high street and certainly not the rule, whilst everyone appears to be buying products online and avoiding most high street shops, Primark are going from strength to strength and setting an example for the rest of the high street.

Primark have really posed the question as to whether budget, fast fashion items are the future of the high street. Is budget the only way to survive in today’s climate? It certainly seems like the more expensive, high end retailers may need to pivot their focus to online efforts if they cannot match cheaper retailers prices.”  

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