Primark sales fall amid heatwave and weak spending as ABF readies spin-off
Primark's sales have declined due to hot weather and soft consumer demand, prompting owner Associated British Foods to accelerate its preparation for a demerger.
Associated British Foods, the parent of Primark, revealed plans to launch a home-delivery channel for customers in Great Britain, though it did not specify when the service will begin. To facilitate the new offering, ABF purchased a warehouse in Sheffield. The announcement comes after Primark expanded its click-and-collect system, allowing shoppers to order online and pick up in stores.
In its latest trading update, ABF said like-for-like sales fell 2.6% over the last financial year, driven by soft performance in continental Europe, while UK sales are estimated to have risen 0.6% year-on-year. Seasonal factors, such as prolonged hot weather, delayed the shift to autumn apparel, but sales have improved as temperatures cooled. CEO George Weston highlighted the UK and womenswear as strong areas and said the delivery channel presents an opportunity for profitable growth.
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