Primark/Penneys misses sales targets due to impact of Covid restrictions

The group said Primark, which does not trade online, did see an improvement from a weekly decline in like-for-like sales of 24% early in the quarter to a drop of 10% in recent weeks. File Picture: Gareth Chaney/Collins

Sales at fashion retailer Primark – which trades in Ireland as Penneys - fell short of management expectations in its latest quarter, hit by public health restrictions in major markets to control the fast-spreading Delta coronavirus variant.

Shares in owner Associated British Foods were down 3.4% it forecast Primark's like-for-like sales in its fourth quarter to September 18 were down 17% on the same period two years ago. That was after a 3% increase in the third quarter when stores reopened from pandemic lockdowns.

Primark's two biggest markets, Britain and Spain, were particularly badly hit.

Britain suffered in late June and early July from a surge in the number of people self-isolating following contact tracing alerts - the so-called "pingdemic". 

Spain was hurt by the decline of foreign tourism.

The group said Primark, which does not trade online, did see an improvement from a weekly decline in like-for-like sales of 24% early in the quarter to a drop of 10% in recent weeks.

Finance chief John Bason said Primark maintained its market share and was optimistic about key Christmas trading.

He noted delays with some autumn/winter inventory caused by port and container freight disruptions - part of supply chain problems across Britain due to a shortage of lorry drivers.

But he said stores were not short of product.

- Reuters