Primark forced to discount more

THE owner of the discount fashion chain, Primark, which owns Penneys in Ireland, said it was having to discount more than expected as it battles the harsh consumer climate.

Associated British Foods, which also owns Twinings, Ovaltine and Kingsmill, said the budget retailer’s like-for-like sales rose by 3% in the year to September 17 but that it needed a higher than normal level of price cuts to get customers spending. This will hit operating margins by more than anticipated.

Overall, sales at Primark continued to grow and are expected to be up 13% for the year when including new stores. The group’s latest store, a 46,000 sq ft shop adjacent to the London Olympics site, opens today.