Clothing retailer Primark has warned that the lockdowns being introduced in parts of Europe will hit its sales in the run-up to Christmas.
In a statement to the City, owner Associated British Foods warned that more than half its stores will soon be temporarily shuttered – once England’s lockdown is introduced.
This means the company is facing lost sales of £375m, as outlets in other areas including France and Wales are already shuttered.
ABF explains: “As of today, all Primark stores in the Republic of Ireland, France, Belgium, Wales, Catalonia in Spain and Slovenia are temporarily closed, which represent 19% of our total retail selling space. The announced period of closure varies by market. The UK Government announced its intention to close non-essential shops in England for one month from 5 November to 2 December. Assuming that this will be passed by the UK Parliament on 4 November, 57% of our total selling space will be temporarily closed from 5 November.
Our estimated loss of sales for these stores, including the stores in England, for the announced periods of closure is £375m.