Primark's US goal gives 20% rise in sales
PRIMARK is on course for a near-20 per cent leap in annual sales as it revealed its offensive to crack the US will initially include around 10 new store openings.
The discount fashion retailer's owner Associated British Foods (ABF) updated the market on the performance of its business which showed strong performances from Primark, Twinings and Kingsmill offsetting a weaker showing from its sugar arm.
We think we have a very distinctive offering in Primark
Primark's annual sales are forecast to be up 17 per cent on 2013, fuelled by increased retail space across Europe and popular spring and summer ranges. Like for like sales, which exclude new stores, are expected to be up 4.5 per cent on the year, which is below analysts' expectations of 5.2 per cent.
Primark has kick-started its US expansion by signing a lease on a 70,000sq.ft store in Boston, part of 10 planned store openings in the northeast of the country by the end of 2016.
ABF finance director John Bason said: 'The US is a different market to Europe. We've got to unlock some of these fashion differences. We think we have a very distinctive offering in Primark."
ABF shares fell 152p to 2757p.