Sales have been “reassuring and encouraging” says parent company AB Foods.
Sales at Primark since the retailer re-opened have beaten expectations, with parent company AB Foods describing them as “reassuring and encouraging”.
In a pre-closing update for the year ending September 12, AB Foods said that Primark’s cumulative sales since re-opening to the year-end are expected to be £2 billion.
Its adjusted operating profit is now expected to be at least at the top end of the £300-350 million range which was previously advised, reported Retail Gazette.
“Since reopening we have seen increasing numbers of transactions driven by footfall,” the statement from AB Foods said. “The average basket size was initially significantly higher than last year, reflecting some pent-up demand, and while this outperformance has reduced in recent weeks it remains higher than a year ago.”
Sales at stores in retail parks are higher than a year ago, with shopping centre and regional high street stores broadly in line with last year.
However, Primark’s 16 largest destination city centre stores have suffered “significant” decline in footfall, contributing 8% of total sales since lockdown. This compares with 13% pre-COVID.
Full-year sales in the UK since re-opening are expected to be 12% lower on a like for like basis, although if the four large UK destination city centre stores are excluded, the decline would be around 5%.
Sales across the rest of Europe, meanwhile, are likely to be 17% lower on a like for like basis, while in the US the figure is expected to be 9% lower (but are 2% ahead when excluding the Boston destination city centre store).
AB Foods also noted that due to an earlier than expected re-opening of stores and a stronger summer trading period, the book value of spring/summer inventory that will be carried into next year is now expected to be around £150m.
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