Penneys consider growing stores

HIGH Street retailer Penneys is considering expansion following an excellent trading year.

The low-cost fashion store said it was very encouraged that the performance at Penneys in Ireland has been so strong during its financial year.

It added that it is pursuing further opportunities to expand selling space in its established markets in Ireland.

The group, which trades as Primark in Britain, yesterday reported that overall sales grew by 37% and profit by 20% in the year to 15 September 2007.

It said revenue at its Primark stores hit £1,602m (€2,297m) this year, up from £1,168m last year.

The chain’s sales rose 1% at shops open at least 12 months in the latest year.

Operating profit as a percentage of sales declined by about 1.7 percentage points after the company increased discounting to clear inventory because summer rain had discouraged spending on fashions.

The company, which is owned by Associated British Foods (ABF) does not breakdown results for their Irish operations.

It said however that two stores opened in Ballina and Swords in Dublin this year performed very well.

Chief executive of ABF George Weston said: “Whilst the main focus for development has been the UK, trading in Ireland continued to be very strong last year.

“The Irish estate expanded with the opening of two new stores and extensions to existing stores, particularly at the successful location at Blanchardstown, west of Dublin.”

Primark said this year was significant for the company as many records were broken during the year.

There are 37 Penneys stores in Ireland with a further store at Cork’s Wilton Shopping Centre due to open this month.

The opening of this store is expected to create 185 jobs.

Primark employs more than 22,500 people.