Primark sales rise 19% outside Ireland

PRIMARK, which trades as Penneys in Ireland, saw sales jump 19% in the months leading up to Christmas but Irish sales suffered slightly.

The sales boost, which covers all of the Irish headquartered group’s stores worldwide reflected the increase in retail selling space and “very good” like-for-like sales growth, particularly in Spain and Britain.

The company added, however, that sales in Ireland are “seeing the effects of economic recession”.

The discount retailer’s parent firm Associated British Foods (ABF) said Primark would help it see a “substantial” rise in full-year profit.

The company has 196 Primark and Pennys stores in Britain and Europe.

Since last year end it opened five new stores, two in Britain, one in Frankfurt, Porto and its first in Belgium. It also reopened its store in Waterford following what it called a substantial extension.

ABF said the business was performing ahead of forecasts as revenue at the clothing retailer and sales of sugar soared.

Primark’s revenue constituted 25% of AB Food’s total sales, while sugar sales represented 17%.

“There remains some uncertainty over the pace of economic recovery and the outlook for the British consumer,” AB Foods said in a statement.

“However, we expect good revenue growth and a significant increase in operating profit this year.”

Philip Dorgan of Ambrian Partners, said while consumers had shown a willingness to spend over the Christmas period, there were concerns over the future.

“The sector has doubled over the past year and people are concerned that the economy is going to take a turn for the worse and this is as good as it gets,” he said.

“Companies are being cautious.”