Primark announces better than expected sales

There has been a lot of gloom around in the retail sector recently after discount fashion chain Ethel Austin met with administrators last week to discuss its future.

Last month, clothing chain Select Retail, had to be rescued from administration while Mexx, the US-owned fashion retailer, announced it was to close its UK stores.

The future of rival MK One remained in doubt at the end of last week after the chain of 172 stores were put up for sale by its Icelandic owner Baugur.

However, Irish-based fashion chain Primark has reported better-than-expected Christmas sales. The group owned by Associated British Foods said sales increased 26% in the 16 weeks to January 5.

The disastrous month for the value clothing sector has made analysts nervous. Financial services company, Citigroup, said Primark cannot defy High Street gravity indefinitely.

Late last year, Primark overtook George at Asda as the UK’s most popular value clothing retailer.

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