Primark bucks the trend as sales rise 14%

Irish-based fashion chain Primark, which is owned by Associated British Foods, has bucked the trend by announcing that sales are up 14% in the third quarter.

However, analysts at Citigroup said Primark, which is known for selling clothes at the budget end of the market, will not be able to defy High Street gravity forever.

The credit squeeze has meant consumers are cutting back on spending and the retail sector is currently experiencing a turbulent time.

In an interim management statement, the company said despite a weakening in consumer demand, Primark’s trading in the third quarter was strong. However, sales growth on a like-for-like basis was held back by weak trading in April.

The discount clothing retailer operates in 179 stores which include eight in Spain. The group is due to open another Spanish store at the end of the year and one in Derby, UK.

Earlier this year, the company was named the second biggest clothing retailer in Britain but has no stores in Edinburgh. However, last month it announced plans open a branch on a prime site in Princes Street.

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

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