Primark hands Christmas gifts to the High Street – 10 new stores

‘Pushing’: Primark opened 10 stores before Christmas in a major boost for the ailing High Street

Primark opened 10 stores before Christmas in a big boost for the ailing High Street.

The discount fashion retailer, which has 191 stores across the UK, made the announcement in an update from its owner Associated British Foods (ABF).

Sales have been “encouraging,” according to ABF, as the group has stuck to its forecasts for the full year.

Chairman Michael McLintock said that although the business was facing “significant input cost inflation,” the volatility that hit it had eased. ABF confirmed that Primark will open 27 stores in September, with 10 due to open before Christmas.

And the group, which also owns the tea and curry brand Twinings Patak’s, reports that profits in its food business will be higher than last year.

RBC equity analyst Richard Chamberlain said: ‘We expect a strong recovery in sales given the ongoing good recovery trend for store-based retail.

‘On the food side of the business we expect grocery and ingredients margins to be pressured by higher input costs from energy, logistics and commodities, but sugar to see increased profitability, helped by strengthening European and world sugar prices, although this remains a business. turbulent. ‘

Earlier this week, the retailer revealed plans to spend around 90 million on expansion in Spain, its second biggest market after the UK.

The fashion chain, which has 408 stores in 14 countries, will open eight locations including in Lanzarote and in the Spanish enclave of Melilla, in north Africa.

Although many retailers are struggling due to stiff competition from online specialty brands, Primark, with its low prices, continues to thrive.