Stock Spotlight: Pandemic pain does not shake Primark's commitment to bricks and mortar retail

Aims to increase stores 33% in five years

James Baxter-Derrington
clock • 4 min read

Despite losing more than a third of its trading days to pandemic-related lockdown restrictions, Primark owner Associated British Foods has doubled down on its commitment to bricks and mortar and continues to shun the commonly accepted knowledge that an e-commerce offering is essential to the survival of a high street retailer.

Like-for-like sales were down 12% on pre-pandemic levels, according to ABF's 2021 annual results, but a strong recovery in the second half of the year has boosted the firm's profits to £415m, up 15% on 2020. Even after job retention scheme monies are returned to the UK, Republic of Ireland, Czechia, Portugal and Slovenia, Primark still recorded profits of £321m, 32% of the group's total profits. By 2026, the firm aims to increase its number of stores by 33%, from 398 to 530 shops globally, with no signs of an online store on the horizon, a move that Henry Flockhart, manager of Aviva U...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Companies

M&G bucks industry trend with £1.5bn wholesale asset management inflows

M&G bucks industry trend with £1.5bn wholesale asset management inflows

Heavy outflows from UK institutional business

Valeria Martinez
clock 21 March 2024 • 2 min read
abrdn seeks lowest buyback permission since rebrand

abrdn seeks lowest buyback permission since rebrand

AGM guide

Cristian Angeloni
clock 20 March 2024 • 2 min read
7IM acquires £430m AUMA Eastcote Wealth Management

7IM acquires £430m AUMA Eastcote Wealth Management

Eastcote WM to maintain brand

clock 20 March 2024 • 1 min read
Trustpilot