Primark’s full-year trading update shows a fashion retailer in fine fettle, in stark contrast with many of its rivals.
The retailer’s group sales are expected to rise 13%, bolstered by a 1% increase in like-for-like sales.
The retailer has so far weathered the perfect storm of currency fluctuations and consumer uncertainty that has temporarily capsized rivals such as New Look and said its UK market share had “increased significantly” during the period.
Primark also flagged that the anticipated negative impact on margins in its second half had been overblown and that the retailer’s hedging rates being more punishing had been offset by lower markdowns and input margin migration.
The fashion retailer also continued its eye-watering pace of expansion, and opened 30 new stores across nine different countries during the year.
While many fashion retailers are grappling with falling sales in the face of falling consumer confidence and an overcrowded market, Primark seems to have gotten the best of both worlds – a clear brand proposition at a price that will win over the cost-conscious customer.
Quote of the day
“After generations of relentless expansion, retail market growth is over. It would be impossible to overstate the significance of this, and its implications. After generations of ‘build it, and they will come’, growing sales today means taking business from the store next door”
– Retail analyst Richard Hyman
Today in numbers
The amount that Tesco deducted from charity plastic bag sales to cover “administrative costs”.
The rise in The Entertainer’s half-year sales.
Look out for athleisure stalwart JD Sport’s interim results.
Grace Bowden, reporter