Parent Associated British Foods reveals impact of tougher restrictions across the UK and Ireland.
As more areas of the UK and Ireland head into tier four due to the pandemic – meaning that non-essential retailers have to close their doors – Primark’s parent, Associated British Foods has said it will face a £650 million sales hit.
The company had previously warned investors in December of a £430 million impact due to the enforced closures.
Due to the tightening of restrictions in a number of regions, as of January 1, 2021, 253 Primark stores are temporarily closed. This represents 64% of the fast fashion retailer’s total selling space.
As Source went to press, mainland Scotland also announced it would go into lockdown from midnight until at least the end of January.
In December, the retailer reported that it had recovered some of its costs, with overheads falling 25% during the autumn lockdown, and early signs showing that re-opened stores were seeing good sales, with some open throughout the night to maximise pre-Christmas demand.
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