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Primark, the international fashion retailer, has cut its sales forecast for this year, attributing weak performance in its core UK market to cautious consumers.
Associated British Foods, Primark’s parent company, said in a trading update on Thursday that it was now targeting “low” single-digit sales growth for the fashion chain in 2025. This figure is down from previous single-digit growth forecast provided in November. .
“Sales activity within certain elements of our customer base was weak due to cautious consumer sentiment and a lack of seasonal purchasing catalyst given the mild fall weather,” the company said.
ABF, which also owns the Ovaltine and Twinings brands, said Primark had seen “good growth” in mainland Europe and the United States.
But the fashion chain’s comparable sales in the UK and Ireland – which account for almost half of the total – fell 6 per cent in the 16 weeks to January 4.
The company said shoppers did not buy as many clothes in October and November, but sales picked up during the key Christmas trading period.
In the UK, like-for-like sales fell 6.4 per cent, with Primark’s share of the total UK fashion market falling slightly to 6.8 per cent.
Overall, Primark’s total like-for-like sales fell by 1.9 per cent.
ABF expects Primark’s adjusted operating profit margin in 2025 to remain broadly in line with last year’s level.
It did not change its forecasts for the group’s other divisions, which cover groceries, ingredients, sugar and agriculture.