Penneys to raise prices as inflation bites

Penneys has been hurt more than some rivals by European lockdowns and restrictions around Covid because the chain lacks an online business to fall back on.

Penneys owner Associated British Foods warned that soaring inflation means it will have to selectively increase prices.

Famed for its low prices, Penneys/Primark can’t offset all inflationary pressures with cost savings and will have to make some price increases across parts of its autumn and winter range, the company said in a statement. Shares in AB Foods fell more than 7% in early trading in London.