Primark provides replace on costs in UK shops with ‘extra excellent news than unhealthy’ for customers
Primark has given its assurance to customers that there will be no price increases in stores for the rest of 2024.
George Weston, CEO of Associated British Foods, which owns Primark among other food and sugar brands, commented on the Labour Party Budget. Weston, who heads Associated British Foods (ABF), a company that owns Primark as well as various food and sugar brands, revealed that the business is bracing itself for a significant cost increase following Rachel Reeves’s tax-raising measures.
These include a hike in employers’ national insurance contributions starting from next April.
Weston explained that this change would cause ABF’s national insurance bill to “go up by tens of millions” of pounds.
He added: “We undoubtedly have significant increases in costs that we are facing. It is not a surprise, the money had to come from somewhere.”
(Image: Getty Images)
Furthermore, Weston stated: “It’s quite clear to me that this a budget where the weight of the tax rises are falling on business within that, it’s fallen particularly on the high street.”
Despite this, he maintained that Primark had “no intention” of increasing prices for the remainder of the year, reports Birmingham Live.
Weston also expressed that the budget was favourable for struggling shoppers, despite the blow to retailers. He claimed there was “actually … more good news for the least affluent in the budget than bad”.
Weston noted a significant trend over the past two years amid the cost of living crisis, stating that “people buy clothes just as they need them” rather than purchasing in advance.
“They’re trying to conserve their cash from one month to the next,” he stated. “I hope with the budget behind us, that removes uncertainty and people have a little bit more money in their pockets,” Weston expressed.
He further added: “If the least affluent have more income, we will benefit disproportionately”, highlighting Primark’s position as a budget retailer.
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