Trading is being driven by consumer demand for childrenswear, leisure and nightwear, along with summer products, says retailer.
Trading since Primark stores were allowed to re-open on June 15 has been “reassuring and encouraging” according to the retailer’s owner, Associated British Foods.
ABF revealed this morning (July 2) that sales at Primark dipped by 75% to £582m in the third quarter to June 20. The company added that – due to the ongoing pandemic – full-year operating profits would be in the range of £300-350m, compared with £913m reported for the last financial year.
However, ABF said that stores have re-opened more quickly than expected – particularly in Ireland. On June 15, Primark re-opened 179 stores (almost half of its estate) across four markets, plus a new store in Trafford Centre, Fashion United reported.
As of July 2, 367 Primark stores have re-opened, with the remaining eight expected to follow in the near future.
However, two stores in Leicester are temporarily closed due to lockdown restrictions being reimposed in the city.
Consumer demand since the re-openings has been concentrated on childrenswear, leisure and nightwear, as well as summer products such as t-shirts and shorts.
While regional stores – especially those located in retail parks – are performing well, stores in big city centres are suffering, said ABF, due to the lack of tourism and lower commuter footfall.
Sales in the week to June 20 (when 90% of the store estate had re-opened) stood at £133m. Trading in England and Ireland was also “ahead of the same week last year”.
Further good news comes with the confirmation that Primark will be pushing ahead with its retail expansion – five new stores are expected to open in the remainder of the current financial year: one in Warsaw, two in Paris, plus stores in the American Dream shopping centre in New Jersey and in Sawgrass Mills, Florida (taking Primark’s US store count to 11).
ABF did caveat that the US openings rely on the lifting of local COVID-19 restrictions.
Primark has also placed orders worth over £800m for the autumn/winter season. Further orders will also be “placed shortly”, with the total for the coming season expected to pass £1 billion.
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