Primark-Penneys to spend €163m on its UK stores   

Investment will include the opening of at least four new stores and will create at least 850 jobs

Primark has said it will hold prices, even as it cautioned input cost inflation will hit its results in the new financial year.

Fashion retailer Primark-Penneys set out plans to invest £140m (€163m) in its UK stores over the next two years, betting on luring customers as Britain grapples with a cost-of-living crisis.

The budget group, part of Associated British Foods, said the investment would include the opening of at least four new stores and will create at least 850 jobs.

The plan contrasts with other retailers such as Marks & Spencer, which has shut shops due to weak footfall and rising costs, while a shift to online shopping, accelerated by the pandemic, has also hampered store revenues.

"The UK is our biggest market, and as we continue to grow and expand our business internationally, we remain as committed as ever to investing in our stores," Primark chief executive Paul Marchant said. 

Even before the pandemic pushed more shoppers online, many retailers were struggling due to stiff competition from online-only brands such as Boohoo and Asos, leading to the collapse of household names like Debenhams.

That saw Primark, which has shunned the extra cost of home delivery, launch a click and collect online service earlier this month.

Primark has said it will hold prices, even as it cautioned input cost inflation will hit its results in the new financial year.

Exacerbating the pain from rising costs, footfall at UK retail destinations still remains 15% lower on average this year compared with pre-pandemic levels, according to Springboard data. 

• Reuters