Primark's “strong” Christmas sales boosted by Rita Ora

Value fashion and homeware retailer Primark has reported “strong” Christmas trading despite the unseasonal warm weather, helped by its performance wear, leisure and tailored clothing and collaboration with singer Rita Ora.

In the 16 weeks to January 6, retail sales were up 7.9 percent to 3.37 billion pounds, with like-for-like sales up by 2.1 percent driven by higher average selling prices.

In the UK, Primark's total sales in the period rose 4.5 percent, with like-for-like sales up 3.8 percent. The retailer noted that the period’s early warm weather was challenging, however, sales grew strongly in the run-up to Christmas. The retailer reported its biggest-ever day of trade on December 2, and the week before Christmas was its biggest-ever trading week in the UK.

Primark’s market share in the UK also reached a new record of 7.1 percent for the 12 weeks to December 10, up 0.1 percentage point from last year, according to Kantar.

Primark sales strong in the UK, Europe and the US for Christmas period

In Europe, excluding the UK, total sales in the period rose by 8.1 percent, with like-for-like sales up by 1.3 percent. Primark added that performance “was mixed” with some countries trading well and other countries impacted “by a combination of strong comparatives in the same period last year and local economic conditions”. It also added that sales were boosted by three new stores in France, one in Spain and one in Poland.

Primark also reported progress in the US, where sales grew by 45 percent in the period, driven by three new store openings.

Looking ahead, Primark said it exits the period with stock levels “in a good position,” and will continue to monitor the situation in the Red Sea. At this stage, it states it doesn't expect any significant disruption to its supply chain.