High street success for Primark

Primark continued its run of success on the high street today after its owner reported better-than-expected Christmas sales for the chain.

Associated British Foods said sales at Primark rose 18% in the 16 weeks to January 3, helped by an increase in selling space and “very good” like-for-like sales growth.

While the company said Primark traded ahead of its expectations, it did not provide a figure for same-store sales.

Primark's performance compares favourably with rival Marks & Spencer, which reported a 8.9% fall in general merchandise sales for its third quarter.

The discount fashion chain, which became known for its super-cheap clothes long before the arrival of the credit crunch, now has 187 stores following a sharp expansion in the UK and Spain in recent years.

It recently opened a new distribution centre at Thrapston, Northamptonshire, in order to support the growth.

Today’s figures come in the week that an undercover investigation by The Observer and the BBC claimed that Primark’s British suppliers employed illegal workers and paid them less than the minimum wage.

The investigation allegedly found that workers were paid £3 an hour for 12-hour days, seven days a week, nearly less than half of the £5.73 (€6.30) per-hour minimum wage. Primark has said it is investigating the claims.

The BBC investigation focused on Manchester-based TNS Knitwear Ltd and an unauthorised sub-contractor, Fashion Waves Ltd.

Primark’s parent company Associated British Foods also owns grocery brands such as Twinings and Silver Spoon. It said group revenues were up 21% in the 16 weeks to January 3.