Associated British Foods (ABF), the parent company of discount clothing chain Primark, said it had a great Christmas, driven by resilient demand, like other low-cost retailers amid the cost crisis. life.
Over the 16 weeks ended January 16, the group saw its sales increase by 20%, to 6.7 billion pounds (7.6 billion euros), with notable price increases in its food division to absorb the cost increases, which increases turnover but reduces its margins.
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Despite “
significant cost pressures, inflation has become less volatile and recently some commodity prices have come down.
Consumer spending has proven to be more resilient
,” the group comments in a statement.
With double-digit inflation in the country, the company believes its "
affordable prices
" boosted Primark's sales, which "
exceeded expectations
", during the period under review, when the brand has also pursued an "
accelerated program
" of store openings.
“
Primark has been cautious about price (rises) given its place in the market
” but the brand has nevertheless “
been able to pass on some increases
” in costs, notes Richard Hunter, an analyst at Interactive Investor.
And “
sales growth outside the UK continued
,” he says.
Desire for sustainability
"
Our experts believe Primark will regain much of the ground it lost to online merchants during the pandemic over the coming year
," said Third Bridge analyst Alex Smith.
But despite these positive notes, the market remains cautious until the brand "
manages to demonstrate that (this dynamic) is sustainable
", according to Richard Hunter: the group's action was down 0.70% at 1,856.50 pence. on the London Stock Exchange shortly before 09:00 GMT.
Read alsoPrimark will create 800 jobs in France and open 7 new stores
Faced with the severe cost-of-living crisis, low-cost retailers did well for Christmas, with the German discount supermarket chains Lidl and Aldi announcing excellent sales for this period, as did the fast-food chain food Greggs or the group of B&M stores.
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