Primark owner eyes more Irish stores
The owner of value clothes retailer Primark, which trades as Penny's in Ireland, today said it would continue to open new stores despite reporting a slide in full-year profits.
Associated British Foods said Primark’s underlying profits fell 8% to £309m in the year to September 17 as it “absorbed” some of its cost hikes, including the higher rate of VAT and a near doubling in cotton prices.
Like-for-like sales increased 3% in the year as its strategy of focusing on value and putting on more promotions helped drive sales at a time when shoppers are cutting back.
But although Primark’s markets remain tough, particularly in the UK, it said there are “exciting” opportunities to open new outlets and expand stores in all of the countries in which it trades, including Ireland, Spain, the Netherlands and Germany.
Primark has doubled its store numbers over the past decade and now has a total of 223, having opened 19 new stores over the past year. It opened 11 in the UK, bringing its total to 154.
A new store will open in Edinburgh just before Christmas and a second store is planned for London’s Oxford Street.
It has recently opened a new stores in northern Portugal, Malaga in Spain, and Hannover in Germany.
ABF, which also makes Twinings tea, Silver Spoon sugar and Kingsmill bread, said group profits were up 1% to £920m as it benefited from higher margins in its sugar production arm.
Primark’s revenues increased 13% to £3bn.
