Primark Faces Slump in UK Sales Amid Pre-Christmas Consumer Spending Slowdown

UK like-for-like sales fall 6.4% before pre-Christmas recovery; overall Primark revenue grows due to strong international performance.

Primark, the UK-based discount fashion retailer, experienced a significant decline in its UK sales leading up to the Christmas period as consumers exercised caution in their spending.

According to Associated British Foods (ABF), Primark's parent company, like-for-like sales in the UK fell by 6.4% over the 16 weeks leading up to January 4, with notable declines in October and November before a recovery in December.

The retailer's market share in the UK slightly decreased to 6.8%.

ABF cited a general contraction in the UK clothing retail sector during the period, attributing weak trading activity among certain consumer segments to cautious consumer sentiment and a lack of seasonal purchasing triggers, partly due to an unexpectedly mild autumn.

Political events, including discussions around the October Budget by Chancellor Rachel Reeves, were also noted to have impacted consumer confidence.

Despite the challenges, Primark reported an improvement in trading during the final weeks before Christmas, with UK stores, including two key locations on Oxford Street, returning to growth.

The UK and Ireland collectively represent 45% of Primark's total sales.

In contrast, Primark's overall sales grew by 2% to £3.36 billion at constant currency rates, driven by strong performance in international markets such as Spain, Portugal, France, Italy, Central and Eastern Europe, and the United States.

The company highlighted 'good growth' from various fashion collections, including those associated with Rita Ora, Paula Echevarría, and Kem Cetinay.

The women's wear segment was most affected by decreased sales of cold-weather and seasonal clothing, though there was robust demand for performance, leisure, and nightwear categories.

Across the broader ABF group, sales fell by 2.2% to £6.73 billion over the same period.

Primark is now targeting low-single-digit sales growth in 2025, supported by its strategy to expand store locations in growth markets across Europe and the US, which is expected to contribute approximately 4% to total sales growth.

This expansion is projected to counterbalance weaker like-for-like sales in the UK and Ireland.

Despite prevailing market conditions, ABF expressed continued confidence in Primark's business model and is focusing on various initiatives across product development, digital platforms, and brand reinforcement to drive future growth.