Budget fashion star Primark boasts record Christmas sales
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UK fast-fashion retailer Primark has reported record Christmas sales, largely due to the addition of a massive 300,000sqft of retail selling space.
In its home market, Primark opened five stores during the 16-weeks to January 6 and during the whole year added 1.1 million sqft of space. By the end of the period the company, a subsidiary of Associated British Foods, operated 350 stores and 14.2 million sqft of trading space.
Total retail sales rose 7 per cent year-on-year on a constant currency basis.
“The UK continued to perform well with strong like-for-like sales, a consequent strong increase in share of the total market, and trading which reflected the breadth of our consumer offering,” the company said in a statement.
Figures for Europe were less inspiring, due to warm weather in October reducing demand for winter clothing.
The company said its operating margins in the first half year are now expected to be close to those in the same period last year with better buying almost offsetting the adverse effect of the weaker exchange rate between the pound and the US dollar.
Questions & Answers
Q.What is the primary reason Primark reported record Christmas sales this year?
What is the primary reason Primark reported record Christmas sales this year?
The record Christmas sales are largely attributed to the significant increase in retail selling space. Primark added a massive 300,000 square feet of retail space during the period, contributing to this growth.
Q.How did Primark's performance in Europe compare to its home market?
How did Primark's performance in Europe compare to its home market?
Performance in Europe was less positive than in the UK. The article notes that warm weather in October reduced demand for winter clothing, impacting sales across the continent.
Q.What factors are influencing Primark's expected operating margins for the first half of the year?
What factors are influencing Primark's expected operating margins for the first half of the year?
Operating margins are expected to be similar to last year, with better buying almost cancelling out the negative effect of the weaker exchange rate between the pound and the US dollar.
Q.How much new retail space did Primark add in total over the full year?
How much new retail space did Primark add in total over the full year?
Over the entire year, Primark added 1.1 million square feet of trading space. By the end of the period, the company operated a total of 14.2 million square feet across its stores.
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