Primark sales boosted by bargain hunters

Discount clothing retailer Primark has reported a rise in sales as consumers look for lower prices amid the economic downturn.

The budget fashion chain continues to buck the trend after also reporting strong sales over the Christmas period.

Its parent group Associated British Foods (ABF) said like-for-like sales (which exclude the impact of new stores) grew 5% in the last six months.

Over the last 12 months, the group has expanded overseas opening three stores in Spain, two in Britain and one in the Netherlands. The group is planning to open seven more stores this year, which will take its total to almost 200.

However, ABF, which owns the Silver Spoon sugar refining business, said that its grocery arm was being hit as consumers cut back and downtrade.

The group said that the rate of growth in sales of its Twinings premium teas in the US and UK had slowed.

Consequently, the group said first-half profits would be “slightly lower” than last year.

In early trading today, shares rose 13p to 658p.

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