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Primark, the international fashion retailer, has blamed cautious consumers in its main UK market by lowering its 2025 sales forecast.
Related British FoodsPrimark’s parent company, said in a trading update on Thursday that it is now targeting “low” single-digit sales growth for the fashion chain in 2025. This figure is down from forecasts of mid-single digit growth. single digits provided in November.
“Commercial activity within certain elements of our customer base was weak due to cautious consumer sentiment and a lack of seasonal purchasing catalyst given the mild fall weather,” the company said.
ABF, which also owns the Ovaltine and Twinings brands, said Primark had seen “good growth” in mainland Europe and the United States.
Overall, Primark’s total sales rose by almost 2 per cent to £3.3 billion in the 16 weeks to January 4, driven by new store openings. But like-for-like sales, a measure that excludes the effect of store openings and closings, fell 1.9 percent during the same period.
The company said shoppers did not buy as many clothes in October and November, but sales picked up during the important Christmas shopping period.
The fashion chain’s comparable sales in the UK and Ireland – which account for almost half of the total – fell more sharply, falling 6 per cent over the 16 weeks. Primark’s share of the total UK fashion market has fallen to 6.8 per cent.
ABF shares were down 3.6 percent in early afternoon trading.
ABF said it expects Primark’s adjusted operating profit margin in 2025 to remain broadly in line with last year’s level. It did not change its forecasts for the group’s other divisions, which cover groceries, ingredients, sugar and agriculture.
Alice Price, apparel industry analyst at GlobalData, said 2025 “is shaping up to be another challenging year for retail as consumers remain uncertain about the economic outlook. Primark therefore needs to promote value for money whilst being affordable.”
She pointed out that women’s clothing is a “weak link” as women have more leeway to reduce “high purchasing volumes during times of inflationary pressures” and are increasingly turning to resale.
