Associated British Foods (ABF), the company that owns Primark, reported a 2 per cent drop in revenue to US $ 12.69 billion for the 24 weeks ended 1st March 2025, as the retailer’s UK sales were negatively impacted by ongoing consumer caution.
Primark’s ‘strong’ consumer value proposition and the way its shop rollout program was carried out contributed to a 1 per cent increase in sales.
Important markets that produced ‘good’ growth included the US, Spain, Portugal, France, Italy, and Central and Eastern Europe. Even though like-for-like sales growth was achieved during the Christmas business period, sales in the UK and Ireland fell 4 per cent.
Because of exceptionally mild weather, there is “a lack of seasonal purchasing catalyst in the autumn months” and cautious consumer sentiment, which are the main causes of the decline in the UK and Ireland.
The retailer’s click-and-collect service kept gaining traction in spite of the weaker performance, raising consumer awareness and enabling access to a greater selection of goods.
As of right now, 158 stores offer the service, and by the end of June 2025, it is expected to be implemented in all 187 of its UK sites.
Additionally, Primark said that “active management” of its UK shop estate—which includes store extensions, relocations, new store openings, and a continuous program of store refurbishments—had increased sales.
Although poor sales in the UK and Ireland have somewhat countered this, Associated British Foods is still aiming for low-single digit yearly sales growth for Primark, which is bolstered by the company’s continued expansion of its retail network in Europe and the US.
In recent weeks, the business observed “early signs of improvement” at Primark in the UK and Ireland. It is still committed to strengthening its value proposition through brand, digital, and product activities in order to propel underlying growth in all markets.
Primark further highlighted that, despite its commitment to absorb significant labour cost rises, it is not raising prices for UK consumers.
