Primark has cut its sales forecasts after the high street chain’s UK shops were knocked by “cautious” shoppers and unfavourable weather.
Parent firm Associated British Foods (ABF) revealed a slump in sales in the UK in recent months amid continued pressure on household budgets.
It told investors on Thursday that it is targeting “low single-digit” sales growth for the brand in 2025.
In November, the company had said it expected “mid single-digit growth”.
ABF’s retail business, which is predominantly the Primark brand, saw sales nudge 0.4% lower to £3.36 billion for the 16 weeks to January 4. This was a rise of 1.9% on a constant currency basis.
Primark said sales in the UK and Ireland declined by 4%, with a like-for-like drop of 6%.
Growth over Christmas was dragged back by “weaker autumn trading in a challenging retail environment” across the UK.
It said demand from some shoppers was “weak as a result of cautious consumer sentiment” while mild autumn weather impacted sales of items such as coats and jackets over October and November.
The group said Primark’s weakness in the UK was partly offset by gains in Spain, Portugal, France, Italy and the US.
ABF, which also runs large grocery, sugar and agriculture divisions, revealed that total sales across the conglomerate slipped by 2.2% to £6.73 billion for the 16-week period.
The grocery arm, which owns brands including Ryvita, Twinings and Pataks, saw sales fall 1.8% to £1.39 billion.
It said good growth from international brands, including Twinings and Ovaltine, was partly offset by declines in certain US and UK-focused brands.
In the UK, overall sales declined due to weaker sales from its Allied Bakeries arm, which makes Kingsmill bread.
Sugar sales dropped by 6% for the period after the group was knocked by tumbling sugar prices in Europe.
