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4mo ago

Primark Faces UK Sales Decline as ABF Warns of Global Risks

Associated British Foods reports mixed sales performance, absorbs rising costs, and accelerates US expansion while navigating economic pressures and leadership changes.

George Weston, Chief Executive of ABF, said, “Primark delivered good growth in Europe and the U.S., with continued consumer caution in the U.K. Primark’s profit and margin delivery was strong, and our low-cost operating model is working well".
A general view shows the Primark store at King of Prussia Mall in King of Prussia, Pennsylvania, U.S., April 3, 2025. REUTERS/Rachel Wisniewski/File Photo
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Overview

  • Primark's UK and Ireland sales dropped 6% in the latest reporting period, contributing to a 6.5% fall in ABF's share price.
  • ABF has pledged to keep UK prices flat despite significant labour cost increases, supported by low cotton prices and a weaker US dollar.
  • The company reported 1% overall retail sales growth, driven by European and US expansions offsetting weaker UK performance.
  • ABF flagged risks to consumer confidence from US trade policies, with potential global recessions adding uncertainty.
  • Primark plans to double its US store count by 2026, while ABF considers closing its Vivergo bioethanol plant due to regulatory challenges.