Primark UK sales hit by sharp slow down in consumer spending
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Primark sales slumped heavily in the UK in the run up to Christmas as “cautious” shoppers cut back their high street spending. Like for like sales at the discount fashion chain were down 6.4% in the UK over the 16 weeks to 4 January with the biggest declines in October and November before a pickup in December, its parent company said today in a trading update. Primark’s market share fell slightly to 6.8%.
In its statement Associated British Foods (ABF) said: “During the period, the overall clothing retail market in the UK declined. 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. “.
Many retailers have reported a marked fall in consumer confidence in the run up to and after the October Budget when Chancellor Rachel Reeves repeatedly spoke of her dire economic inheritance from the Tories. However trading picked up slightly in the final weeks of trading before Christmas when the UK stores, including two flagships on Oxford Street, returned to growth. UK and Ireland account for 45% of Primark’s total sales.
Overall Primark sales grew 2% to £3.36 billion at constant currencies with strong growth in Spain, Portugal, France, Italy, Central and Eastern Europe and the US . ABF said it saw “good growth” from its Rita Ora, Paula Echevarría and Kem collections.
