Primark warns of slowdown in UK


    28 February 2011
    Last updated at 04:15 ET

    Retailer Primark saw strong trade in the first three months of the financial year, despite adverse weather during the Christmas period.

    However, owner Associated British Foods said Primark had seen “a noticeable slowing down of UK consumer demand”.

    ABF said in a trading update that Primark’s revenue would still be 11% ahead of last year, despite a rise in VAT and higher cotton prices.

    ABF said that Primark’s like-for-like sales would be 3% ahead of last year.

    ABF, which also owns brands such as Ovaltine, Ryvita and Twinings, is due to post its interim profit figures in April.

    The company said that all of its businesses would still show that they were “delivering good revenue growth”.

    Primark operates 214 stores mostly in the UK, although it also trades in the Republic of Ireland, Spain, Germany, Portugal, the Netherlands and Belgium.

    ABF shares were down 3.8% in morning trading.

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    Primark warns of slowdown in UK