The chairman of the company behind Primark is today warning of a tough market for retail saying that during November Primark trading was challenging.
Associated British Foods chairman Michael McLintock will say at the firm’s annual general meeting today that “during November Primark trading was challenging, in a tough retail market, but with careful inventory management and improved margins, our expectation for the increase in Primark profit is unchanged.”
McLintock will add: “At this early stage in our new financial year, sales and profit for the first 8 weeks of trading for the group were in line with expectations.”
Primark’s warning is a bad sign for a High Street that was already under pressure.
Neil Wilson of markets.com said: "We know it’s tough out there and share prices across the piece reflect that already to a large degree. But Primark has done better than most and the fact that it too is facing severe headwinds is a concern for the sector as a whole.."
McLintock said that Primark would continue to expand and expects an increase in retail profit for the year.
“Following the opening of a store in Belfast tomorrow, we will be trading from 364 stores and a total selling space of 15.1m sq ft,” he said.
Associated British Foods shares fell 2.13 per cent this morning.