Primark’s sales shrinkage

High street giant, Primark, has seen a significant drop in sales figures over the recent months.

The pension deficit, the Brexit pound and the unusually warm weather are said to be contributing factors to the company’s 2% drop in annual sales.

The sales shrinkage is the first ever to be experienced by Primark in its 16 year history from the turn of the millennium.

Associated British Foods (ABF), the company who owns Primark, also suffered a blow this financial year with a 10.8% reduction in shares.

ABV noted that its pension schemes, which only last year where in surplus, are now at an all time low with a £200m deficit.

The “unseasonable weather” – which consisted of warm pre-Christmas temperatures and a “very cold” March and April – are also said to have caused the low-cost chain to suffer from low-level sales.

According to fashion lecturer BLAH from Manchester Metropolitan University, the weather has prompted consumers to “make do with clothes from the previous year”.

Despite the drop in sales, Primark has opened 22 new stores this year alone – bringing their worldwide total up to 315. With brand new openings in the US, a flagship store in Spain and its first store opening in Italy, the high street giant’s flop may not last forever.

TNT Business

 

Photo Credit: Lewis Clarke

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