Primark plans more store openings as profits rise

Primark’s adjusted operating profit jumped 15% to £415m in the 53 weeks to September 18, despite a 12% drop in like-for-like sales throughout the same period.

The fashion retailer attributed this to the enforced store closures across its estate as different countries and regions reacted to the spread of coronavirus and the Delta variant, resulting in a third of Primark’s available trading days being lost.

It said its offer was nonetheless resonating with customers when stores reopened and it recorded a strong profit margin recovery of 10.6% in the second half.

Primark launched its sustainability strategy in September – a nine-year programme across all 14 markets in which it operates to ensure all Primark clothing is made from recycled or more sustainably sourced materials by 2030.

The retailer is also set to launch a customer-facing website to showcase around 70% of its ranges later this year, so shoppers will be able to check what’s in store before they visit.

Due to its successes, Primark said it saw major growth opportunities across its markets, particularly the US. It plans to grow its store estate to around 530 stores – up from 398 stores currently – over the next five years, with 15 new stores confirmed to open by the end of the next financial year.

ABF chair George Weston said: “Primark delivered a good performance in the face of continued disruption to trading caused by the pandemic. It also unveiled its wide-reaching sustainability strategy with the aim of making more sustainable fashion affordable for all. 

“Although the possibility of further trading restrictions cannot be ruled out, we expect Primark to deliver a much-improved margin and profit next year. 

“We are now intent on expanding our new store pipeline, and investing in technology and digital capabilities to continue improving the performance of the business.”