Primark grows despite tough retail conditions
Business digest: Super cheap high street chain bemoans early sales ahead of full-year results
The food and retail group which owns Primark has said that its profit margins, due to be announced in November, have been hit by the tough economic conditions on Britain's high street.
Finance director for Associated British Foods, John Bason, said that summer sales on the high street had been "earlier”, with heavier discounting and that people were still being careful about what they spend their money on.
The challenge comes on top of a decision earlier this year to absorb rising cotton costs rather than pass them on to the customer, in order to remain price competitive.
However, Primark's trading increased with overall sales up 13 per cent for the year and like-for-like sales up 3 per cent. The chain plans to open ten new stores next year, and add ten per cent more floor space to its existing branches.
Read a full report at Reuters. ·