Friday, November 22, 2024

Primark considers investing outside UK due to Budget

Must read

The fashion giant said that it had seen a strong start to the sales of its autumn and winter ranges, despite wetter weather washing out those of summer shoes and beachwear.

Primark saw a 6% growth in sales in the year overall and saw shirts and leisurewear items do well among men.

It comes as the British Retail Consortium (BRC) has warned of a “disappointing” October.

The BRC suggested that shoppers were holding back on spending on bigger-ticket items until the “Black Friday” sales.

Its latest figures suggest that total retail sales across the UK increased by 0.6% year-on-year in October, a drop against 2.6% seen in October 2023.

“This was part driven by half-term falling a week later this year, depressing the October figures, and November sales will likely see more of a boost,” its chief executive Helen Dickinson OBE said.

Ms Dickinson suggested that the Budget and rising energy bills might have “spooked some consumers” and blamed more mild weather recently for delaying winter purchases of items like coats and jackets.

Elsewhere on Tuesday, online retail giant Asos reported mounting losses, reaching £393m in the year to 1 September.

The group’s turnaround plan has seen it reduce stock and launch clearance sales to shift old ranges.

Chloe Collins, head of apparel at research firm GlobalData, suggested that the retailer has failed to “combat the enormous threat” from other companies include the likes of Shein, as well as the rise of second-hand clothing markets like Vinted.

But Asos boss Jose Antonio Ramos Calamonte said there were some “green shoots” in the performance of its new clothes ranges in recent months.

“We will do things in the right way and we’re going to be patient,” he said.

Latest article