The retailer’s owner Associated British Foods said Primark is targeting low single digit sales growth in 2025, with like-for-like sales in the UK and Ireland falling by 6%
Primark has reported a 4% drop in sales across the UK and Ireland over the last four months. Bosses say it’s because of cautious consumer sentiment and an unusually mild autumn.
The retailer’s like-for-like sales in the region fell by 6%, with its market share slightly dipping to 6.8%. This slump in sales in its largest market, which makes up roughly 45% of the retailer’s revenue, was balanced out by stronger performances in its growth markets.
Sales in Spain, Portugal, France, Italy, Central and Eastern Europe, and the US all saw an increase, with the US recording a 17% rise and Central and Eastern Europe growing by 22%, Retail Gazette reports.
The overall UK clothing retail market also experienced a downturn during this period, with Primark’s performance particularly affected by weaker sales in October and November.
However, the business witnessed stronger sales and like-for-like growth during December’s crucial Christmas trading weeks.
Primark reported strong performances in menswear and kidswear, as well as robust sales in its performance, leisure, and nightwear ranges. Collections by Rita Ora, Paula Echevarría, and Kem also performed well, alongside licensed products.
The retailer continued to expand its click & collect service in the UK during this period, now available in 113 stores, helping to boost online participation and customer engagement.
Primark has expanded its international presence by opening eight new stores, relocating two, and extending one.
These new additions have contributed to a 4% increase in total sales during the period.
The retailer is also persisting with its store refurbishment programme to enhance the global in-store experience.
Looking forward, Primark’s owner, Associated British Foods (ABF), stated: “Primark is now targeting low-single digit sales growth in 2025.”
This growth will be fuelled by the store rollout programme in Europe and the US, which is set to contribute around 4% to total Primark sales growth, despite weaker like-for-like sales in the UK and Ireland during autumn.
“Despite the market conditions in the UK and Ireland, we remain confident in the Primark proposition and continue to focus on initiatives across product, digital, and brand to drive underlying growth,” ABF said.
Primark also anticipates that its adjusted operating profit margin will stay roughly in line with last year’s level, as improved gross margins and effective cost management balance out inflation and increased investment.
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