Primark reports record sales as Covid locks decline in England and Wales Primark

Primark reported record sales last week when retailers were allowed to open in England and Wales and shoppers eager to buy spring and summer clothing as well as spaffers at home.

United Foods, which owns retail clothing and household goods, said more than half of the stores broke their own sales records because many of them offered extended hours. Large queues formed in front of some stores on April 12 before 7 a.m., after a three-month closure due to the latest coronavirus blockade.

The trader exposed the costs of the pandemic, saying he had sold £ 3bn and lost £ 1bn in the last 12 months, but that all of his 65,000 jobs had been saved globally thanks to job retention schemes in the UK. and Europe.

The company intends to repay £ 121m this year, including £ 72m to the British government, following the reopening of stores. He received £ 98m last year.

George Weston, CEO of ABF, said: “The sale of Primark after the reopening of stores shows the relevance and attractiveness of our value for money offer.”

Demand for nightwear, underwear and leisurewear remained strong, but customers also took advantage of new spring and summer palettes, especially women’s clothing, which was promoted on Primark’s social media channels.

The size of the basket has increased compared to the level before Covid, and the company also pointed out that the number of customers in Primarkova main street, shopping center and outlets has returned to 2019 rates.

Primark’s English and Welsh stores account for 40% of total retail space; its 20 stores in Scotland are set to open on April 26th.

However, progress in the eurozone has been mixed, with new blockades being introduced in France, Germany and Italy to stop a third wave of Covid infections. In the Netherlands, Germany and Belgium, shops are open, but customers must book in advance, according to the “click and meet” system.

Primark also had strong sales during the holiday season when all Christmas and gift items sold out and nightgowns and dresses sold well. This meant that he gave up less in the next sale. About £ 260 million of autumn and winter staples, such as pajamas and soft slippers, which were not delivered to stores, will be retained and sold later this year.

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The retailer expects 68% of its retail space to be open by the end of April, which will rise to 79% if limited-store stores are included. Its revenue in the 24 weeks to February 27 fell 40% to £ 2.2 billion, while adjusted operating profit fell 90% to £ 43 million. Sales of “like-like” fell 6% in the UK and 20% in the eurozone. The firm took stock of £ 21 million for autumn and winter clothing on display in indoor stores that it failed to sell.

ABF’s food companies fared better, recording a 30% increase in adjusted operating profit. The group said people stuck at home drank more tea and ovaltin, and Twinings revenue was ahead of the previous year, driven by the popularity of herbal and fruit infusions and growing demand in France.

Buyers also bought more Jordans and Dorset cereals, Ryvita cereals and Duck and Blue Dragon curry sauces, as well as home baking products in the UK, including Silver Spoon sugar. ABF’s total pre-tax profit fell 7% to £ 275 million.

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