Primark continues to dazzle for ABF

FASHION retail to bread, sugar and cooking ingredients group Associated British Foods expects its  half-year figures to beat expectations as a result of the continuing strong performance of Primark.

The group, which owns Pataks, the Wigan-based curry sauces business as well as Allied Bakeries, said Primark had produced an “outstanding performance”.

In a trading update the group said its revamped Allied Bakeries site in Stockport was now fully operational after a £35m, five-year development programme.

The new bread production line for brands including Kingsmill and Allinson, at the site at Ashton Road will deliver increased productivity; more streamlined working methods and improved staff performance.

ABF said sales at Primark had been “exceptionally strong” in the first half and are23% ahead of the same period last year and 25% ahead at constant currency.  

Growth was driven by a 7% like-for-like sales performance, a substantial increase in retail selling space and better sales densities in the larger new stores.

During the period,  the group opened 15 new stores in the period including six in Spain and four in the UK a second store on Oxford Street in London.

At 2 March 2013, there will be 257 Primark stores and 8.9 million sq ft of selling space.  

ABF said such a pace of store openings woud not continue for the remainder of this financial year, but would be increased in the new financial year.  

Revamps and extensions of its Manchester and Newcastle stores will add around 100,000 sq ft of space this year.