Primark targets biggest expansion in 10 years

Primark is set to embark on its largest store expansion round in 10 years as it strengthens its presence in mainland Europe and the US on the back of a strong first half to its current financial year. Parent group Associated British Foods yesterday reported better-than- expected interim figures, showing group revenues of just under £7.3bn (€8.7bn) and operating profits of £640m — up 20% and 36% — for the six months to the first week of March.

Driving that growth for the diversified food, agriculture, ingredients, sugar and retail group was its retail business; namely Primark, which trades here as Penneys. Primark’s operating profits fell 2%, year-on-year, in the first half to £323m, but its revenues were up by 11% at just over £3.2bn.

In its core market of the UK, Primark performed well with 7% year-on-year sales growth.