rimark owner ABF hailed a record Christmas as cash-strapped shoppers flocked to the budget fashion retailer to escape cost-of-living pressures.
Sales at Primark climbed 15% in the 16 weeks to the beginning of January, reaching a record high in the week running up to Christmas day.
Footfall continued to increase on the high street and in retail parks, ABF said, helping push Primark’s share of the UK’s clothing and footwear market from 6.5% to 7% over the period.
ABF said in a statement: “We believe our proposition of great quality at affordable prices and attractive store experience is proving increasingly appealing to both existing and new customers.
“Early trading in this new calendar year has been encouraging but macro-economic headwinds remain and may weigh on consumer spending in the months ahead.”
The firm is set to open a further 17 new stores in the course of the year, including the first store in Slovakia and the first in Hungary, as part of plans to add a million square feet of new retail space over the course of the year. At least seven new stores are planned for the US, but none for the UK.
Overall group revenue at ABF was up 20% to £6.7 billion, but the firm warned inflation, labour costs and a strong dollar meant profits were squeezed compared to last year.
Input cost inflation was becoming less volatile, ABF said, but was continuing to put profit margins under pressure.
