Primark takes 430 million pound sales hit from lockdowns

Primark lost an estimated 430 million pounds during the second wave of Covid-19 lockdowns, the fast-fashion giant’s parent company Associated British Foods (AB Foods) announced Friday.

But the company said it managed to cut the operating costs of its closed stores by some 25 percent during the second lockdown, and that sales have been “very strong” in its major markets of the Republic of Ireland, England, France and Belgium which reopened in recent weeks.

To make up for lost sales, the company has extended the opening hours during the run-up to Christmas in most of its stores in the Republic of Ireland and England.

Primark pushes on with store openings

Across all its markets, 34 Primark stores remain temporarily closed, including all those in Northern Ireland and Austria, representing 7 percent of its total retail selling space compared to 62 percent when the highest number of stores were closed last month.

Since the beginning of the financial year, the company has opened new stores in the US in New Jersey and Florida. AB Foods said like-for-like performance at these new stores, as well as at its other reopened US locations, has been “very encouraging”.

The retailer also reported a “very strong customer response” to its first store in Rome, Italy, which opened last week. The business has also recently opened its fifth store in Barcelona, Spain, and on Friday opened its first store in León, Spain, bringing its total in the country to 50.

“Notwithstanding the currently announced periods of restriction, we continue to expect Primark sales and profit to be higher this financial year compared to last. We will continue to expand retail selling space,” AB Foods said in a statement.

Photo credit: Primark