Sales slow down at Primark

More evidence of the squeeze on household budgets emerged today after the owner of Primark revealed a “noticeable” slowdown in UK consumer demand.

Associated British Foods said the discount fashion chain’s half-year sales rose 3% on a like-for-like basis – half the level achieved during its previous financial year.

AB Foods said while Primark traded well ahead of Christmas despite the snow chaos, the mood had changed among UK shoppers since the start of the year.

It is also battling against an ongoing squeeze on profit margins since the new year VAT rise and impact of soaring global cotton prices.

The update comes after a long period when Primark has weathered the recession and consumer downturn with forecast-beating sales growth.