Associated British Foods, the parent company of Primark, faced a decline in profit due to a drop in UK sales at the budget retailer. According to the company's annual report, like-for-like sales at Primark fell by 3. 1% in the year to September, reflecting weak consumer confidence. This decline was attributed to the ongoing inflation squeeze, with British shoppers tightening their belts amid rising prices on the UK high street.
The company's chief executive, George Weston, expressed confidence in the company's prospects for 2026, but noted that the consumer environment was "particularly unpredictable at the moment." As inflation ___ above the Bank of England's target of 2%, at 3. 8% for the year to September, consumers are turning to even cheaper competitors such as Shein and Temu. In response to the changing market, Associated British Foods is exploring the possibility of splitting off Primark from its food business, which includes brands like Twinings, Ovaltine, and Ryvita. Weston stated that there was a "working assumption" that a separation of Primark was the desired outcome, although no decision had been made.
Analysts believe that a standalone Primark could command a higher share price, separate from its food business, which is "less well-understood" by ← →
Primark saw sales drop in the UK as people spent less at the budget retailer, its owner Associated British Foods (ABF) said.More takeaways: See here
No comments:
Post a Comment