Primark says it is on course to report annual sales and profit growth, as the wider high street continues to be gripped by a costs and consumer confidence crisis.
In a statement preceding its annual results for the year to 14 September, the discount retailer’s owner Associated British Foods (ABF) said they expected to show a 4% rise in total sales for Primark.
The company credited the opening of 14 new stores across its global operations.
On a like-for-like basis, which measures sales performances at stores open for more than a year, business was 2% lower than in the previous year.
For the UK, ABF said its numbers reflected “strong” demand within new selling space, including its new flagship Birmingham store.
But it admitted like-for-like sales were 1% down, reflecting the tough market conditions amid political and economic uncertainty over Brexit.
These factors, coupled with rising wage, business rates and rent costs, have combined with consumer uncertainty to strike high streets with scores of chains forced to seek rescue plans while others have fallen.
The latest indicator of spending interest offered little hope of a pick-up in trade ahead.
The British Retail Consortium / Springboard figures measuring high street footfall in August showed declines of more than 1 % on the same month a year ago.
ABF, whose business interests also include foods and ingredients, said its wider operations had completed preparations, should the country leave the bloc without a deal.
Its statement – ahead of the company’s annual results which are due in November – added that there were contingency plans in place should supply disruption hit.
Shares – up 15% in the year to date – rose by 0.6% when markets opened but later fell back to be almost 2% lower.
It reported its full year outlook was unchanged, with profits from Primark and its grocery arm “expected to be offset by the anticipated decline” in its troubled sugar business.
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