Former Littlewoods sites to be converted by 2007
Primark parent Associated British Foods (ABF) said it is expecting like-for-like growth at the value fashion chain to hit 9 per cent this year, as it fast-tracks the refits of its recently acquired Littlewoods stores.

Primark traded very strongly in the second half of the year and like-for-like sales growth is expected to be about 12 per cent for the period, bringing full-year growth to 9 per cent, the company said.

The fashion chain now has 123 stores, with 2.5 million sq ft (232,250 sq m) of retail selling space. The store opening programme for the first half of the new financial year will add more than 300,000 sq ft (27,870 sq m) and will include most of the stores acquired from Allders.

Primark says it has completed its evaluation of the Littlewoods store portfolio and now expects to trade from 1.2 million sq ft (111,480 sq m) of former Littlewoods store space, compared with the 800,000 sq ft (74,320 sq m) previously announced. Analysts believe this equates to about 40 outlets.

The Primark stores will open progressively from next spring until early 2007. Investment is now expected to reach£500 million - higher than the£375 million previously announced - because of the larger number of stores being retained.

This investment includes the acquisition cost, the net cost of trading out and closure of the Littlewoods business, and refurbishment costs for Primark less proceeds from the disposal of those stores not required. ABF said there has been high interest in the stores it is not retaining.

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