Primark sales in first post-Covid fall amid mild weather and low consumer confidence
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Fashion chain loses market share as rivals M&S and Next increase sales due to online shopping. Sales at Primark have fallen for the first time since the pandemic forced all shops in the UK to close, as mild weather and low consumer confidence hit sales.
Associated British Foods (ABF), which owns the fashion retailer, said sales at Primark’s established stores fell 6% in the final three months of the year. “Trading activity within elements of our shopper base was weak as a result of cautious consumer sentiment and a lack of seasonal purchasing catalyst given the mild autumn weather,” the company said.
Sales of seasonal womenswear, such as coats, knitwear and boots, were particularly affected. A strong Christmas failed to offset poor trading during October and November when the weather was mild for the time of year. The retailer, which has a relatively small digital operation only allowing internet orders to be collected from some stores, admitted it also lost market share to rivals with a bigger online presence. Rivals such as Marks & Spencer and Next increased sales over the period, as shoppers shifted to home deliveries during stormy weather in December.
ABF said total sales over the three months had risen 2%, behind forecasts, and it expected annual sales to rise by no more than 3%. It had previously predicted they would rise by about 5%. Sales in mainland Europe and the US are expected to continue to perform better than the UK and Ireland. In the quarter, sales rose 9% in Spain and Portugal, 5% in France and Italy, and 17% in the US as Primark opened new stores.
