Summary
Primark, a budget fashion retailer, saw a 3.1% drop in sales in the UK over the past year as people spent less. Its owner, Associated British Foods (ABF), reported a 13% decrease in profits and is considering separating Primark from its food brands. Shoppers are spending less on fashion due to higher living costs caused by inflation.
Key Facts
- Primark's UK sales fell by 3.1% in the last year.
- Associated British Foods, which owns Primark, reported a 13% decline in profits to £1.4 billion.
- ABF is thinking about dividing Primark and its food brands into separate businesses.
- The decline in sales is partly due to weak consumer confidence and people spending less in stores.
- Inflation has been constant at 3.8%, affecting consumer spending power.
- Cheaper competitors like Shein and Temu are attracting customers looking for savings.
- Rising costs and online competition have caused issues for many UK high street retailers.
