Primark’s owner, Associated British Food (ABF), has said that the clothing chain will be forced to increase prices for its ranges this autumn and winter, as cost increases can no longer be countered by savings.
ABF also indicated that its food businesses, including tea brand Twingings, bread brand Kingsmill and rye-based snack brand Ryvita, are facing inflationary pressure in many areas.
The company made the warning in its results for the financial half-year ending on 5th March 2022 which saw group revenue increase by 25 per cent to hit £7.882 billion (€9.366 billion).
“Inflationary pressures are such that we are unable to offset them all with cost savings, and so Primark will implement selective price increases across some of the autumn/winter stock,” AFP’s chief executive, George Weston, explained.
“However, we are committed to ensuring our price leadership and everyday affordability, especially in this environment of greater economic uncertainty.”
Regarding general financial performance, the Primark subsidiary achieved a £3.54 billion (€4.2 billion) profit, up 59 per cent on the same period the year before.
The company was also able to keep open the vast majority of its stores throughout the half year, representing a promising development compared to the half year period before which saw a prolonged closure of many stores.
Other notable figures from the release include that Primark claims to have made 39 per cent of its total units sold from recycled or more suitably sourced materials.
The brand is also expanding in a number of regions, including the US, France, Italy and Iberia and plans to deliver a “strong programme” of store openings in next financial year with many scheduled during the period up to Christmas 2022.
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