Friday 2 December 2016

Primark to open first stores in Italy next year

Published 10/07/2015 | 02:30

Models wearing clothes from Penneys’ summer collection. Penneys is part of the wider Primark group.
Models wearing clothes from Penneys’ summer collection. Penneys is part of the wider Primark group.

Sales at Primark have risen 9pc in the year to date, but owner Associated British Foods (ABF) said that the like-for-like performance at the chain was curtailed due to some cannibalisation of sales among new stores in the Netherlands and Germany.

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ABF said that Dublin-headquartered Primark enjoyed a strong performance in countries including Ireland in the 40 weeks to June 20. On a constant currency basis, sales at the chain were up 13pc, but the weaker euro has negatively impacted the reported figure.

Primark is also set to make its debut in Italy, opening a store near Milan in summer next year. It's planning an initial three outlets in the country.

ABF, which has interests in sectors from sugar production to groceries and agricultural products, said that movements in currency exchange rates in the current financial year have primarily affected the translation of overseas results into sterling.

It said the full revenue impact of that, assuming current rates persist, will be a negative £25m (€35m).

"We expect to add a further 0.3 million sq ft of selling space by the end of the financial year," ABF noted in its trading update. "Preparations are well advanced for the opening of our first US store, in September."

ABF said its stores in France have also performed strongly.

Irish Independent

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