Primark and JD Sports buck UK retail gloom

Latest news

    Primark bagsImage copyright Reuters

    Associated British Foods, owner of Primark, has hailed the clothing chain’s UK performance as “remarkable” after a boost in like-for-like sales.

    However, the UK results were not enough to offset a decline in Primark’s same-store sales overall.

    Retailer JD Sports also reported a rise in sales, which it said was “an excellent result”.

    The UK results of both firms come despite the crisis faced by some High Street chains.

    In the 24 weeks to 3 March, Primark saw 3% growth in its UK like-for-like sales, which strip out the effect of new store openings.

    This increase came “against a backdrop of unseasonable weather in Europe” and a decline in margins due to adverse currency movements.

    “Our UK performance was remarkable in the circumstances and delivered a strong increase in our share of the total clothing market,” it said.

    However, this was not enough to boost its overall like-for-like sales, which fell 1.5% after “unseasonably warm weather in October” and “freezing temperatures across northern Europe”. Sales in Northern Europe declined in the period.

    Primark has 352 stores worldwide, with 184 in the UK. There was a drop in sales in Germany, where the chain has 25 stores.

    The fashion chain owner said it expected profit growth to pick up in the second half.

    Meanwhile, like-for-like sales at JD Sports stores grew 3%, while profits were up by 26%, in the 53 weeks to 3 February.

    “This is an excellent result demonstrating our capacity for continuing growth in both existing and new markets, and the strength of our offer in store and online,” said Peter Cowgill, JD Sports executive chairman.

    Chains on the UK High Street have been facing a combination of a squeeze on incomes and rising overheads.

    Prezzo, New Look and Carpetright are among the big names that have been struggling recently.

    View the original article: http://www.bbc.co.uk/news/business-43793599

    http://www.bbc.co.uk/news/business-43793599

    In the same category are

    Rugby World Cup Sevens 2018: New Zealand beat England in final New Zealand made it back-to-back titles, having beaten England in the 2013 final in MoscowNew Zealand became the first men's side to win consecutive ...
    Meet the mayor of a French World War One ‘ghost village’ One hundred years after World War One, the ‘Zone Rouge’ or 'Red Zone' in northern France is still a no-go area.Despite clean-up efforts, there is so m...
    Acid attack on three-year-old boy: Three men arrested Three men have been arrested after a three-year-old boy was seriously injured in a suspected acid attack.The boy was "deliberately attacked" at Home...
    Barclays plans 2,500 new jobs in Glasgow Image copyright Drum Property Group Image caption Barclays intends to set up a new campus at the planned Buchanan Wharf development in Glasgow Bar...
    News Daily: Toronto shooting and May’s Brexit demand Hello. Here's your morning briefing: Image copyright Reuters Deadly shooting in TorontoA young woman has been killed and 13 other people have been in...
    Trump and Rouhani trade angry threats Image copyright Getty Images Image caption Iran limited its sensitive nuclear activities in exchange for sanctions relief US President Donald Trum...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.