Primark has said England’s looming second lockdown, alongside closures across other parts of its global estate, means over half of its selling space will be shuttered as of this week.
The fashion retailer said local lockdowns in Ireland, France, Belgium, Wales, Catalonia in Spain and Slovenia mean 19% of its overall retail space is closed as of today.
The retailer has warned this percentage will surge to 57% provided plans to enter a second lockdown and shut ‘non-essential’ retail in England are implemented on Thursday.
Primark has forecast that current closures and incoming ones in England will cost it £375m in lost sales in the period from November 5 to December 2.
The retailer warned that this situation is further exacerbated by reduced trading hours and the possibility of further local lockdowns in other countries where it operates.
Primark, which is particularly exposed to the impact of a second lockdown because it does not sell online, said it is “implementing the operational plans developed to manage the consequences of these closures and appropriate action will be taken to reduce operating costs”.
The fashion retailer, which will report its full-year results tomorrow, said all orders with suppliers will be honoured.
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