Primark boss George Weston has revealed the fashion chain is “significantly” raising its prices in the US this week in response to President Donald Trump’s tariffs.
The chief executive of owner Associated British Foods told Retail Week the business would be increasing the cost of its goods stateside to “recover the cash cost” of higher import taxes.
“It’s significant because the tariffs are very significant. A $10 pair of jeans will go to $12, just for an example,” he said.
Weston expects the business to see “some reduction in sales volumes” following the change.
His comments come after Primark reported half-year sales are expected to grow around 1% in the six months to September 13, with like-for-likes around 2% below last year.
In the US, revenues are forecast to grow around 23% following a 21% increase in the third quarter and projected growth of 24% in Q4.
Primark’s like-for-like sales in the UK and Ireland are expected to be broadly flat for 2025, and trading is set to be weaker in Europe, with the exceptions of Spain, Portugal, and Central and Eastern Europe.
Weston said trading in Europe, particularly in France, had been “terrible” as he blamed weak consumer sentiment and “real decreases in disposable income”.
Despite feeling confident about trading entering the golden quarter, Weston was cautious about the impact of the upcoming Budget at the end of November could have on spending.
“I’m nervous about what it’ll do to consumer sentiment. The last Budget damaged consumer sentiment, particularly around the less affluent shopper, significantly,” said Weston.
“We went from trading quite well to trading very poorly just over the Budget. It built back up in the second half of the year, which is great, but I would hate to see it happen again.”
Weston said Primark’s recruitment for a new chief executive following the abrupt departure of Paul Marchant in March was “underway”.
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