Primark has lower its gross sales forecasts after the excessive avenue chain’s UK retailers had been knocked by “cautious” buyers and unfavourable climate.
Guardian agency Related British Meals (ABF) revealed a stoop in gross sales within the UK in current months amid continued stress on family budgets.
It informed buyers on Thursday that it’s focusing on “low single-digit” gross sales progress for the model in 2025.
In November, the corporate had mentioned it anticipated “mid single-digit progress”.
ABF’s retail enterprise, which is predominantly the Primark model, noticed gross sales nudge 0.4% decrease to £3.36 billion for the 16 weeks to 4 January 2025. This was an increase of 1.9% on a continuing foreign money foundation.
Primark mentioned gross sales within the UK and Eire declined by 4%, with a like-for-like drop of 6%.
Development over Christmas was dragged again by “weaker autumn buying and selling in a difficult retail setting” throughout the UK.
It mentioned demand from some buyers was “weak on account of cautious client sentiment” whereas gentle autumn climate impacted gross sales of things resembling coats and jackets over October and November.
The group mentioned Primark’s weak spot within the UK was partly offset by positive aspects in Spain, Portugal, France, Italy and the US.
ABF, which additionally runs massive grocery, sugar and agriculture divisions, revealed that whole gross sales throughout the conglomerate slipped by 2.2% to £6.73 billion for the 16-week interval.
The grocery arm, which owns manufacturers together with Ryvita, Twinings and Pataks, noticed gross sales fall 1.8% to £1.39 billion.
It mentioned good progress from worldwide manufacturers, together with Twinings and Ovaltine, was partly offset by declines in sure US and UK-focused manufacturers.
Sugar gross sales dropped by 6% for the interval after the group was knocked by tumbling sugar costs in Europe.
