Skip to content
global forex
Menu
  • Business
  • Economy
  • Forex
  • Internet
    • Technology
  • Markets
    • Stock market
  • online trade
  • Personal Finance
  • Contact Us
Menu
Public News Time

Shareholders Looking For Cost Of Living Impact On Primark

Posted on June 18, 2022 by global forex

Shareholders looking for any impact cost of living crisis will have on Primark when its parent, Associated British Foods, reports third-quarter results

By Daily Mail City & Finance Reporter

Published: 16:50 EDT, 17 June 2022 | Updated: 17:23 EDT, 17 June 2022

Primark should in many ways be well placed to weather the cost of living crisis, and shareholders will look for any impact that the squeeze on households will have when its parent, Associated British Foods (ABF), reports third-quarter results next week. 

The business is hiking prices later this year, but it is unlikely to lose its crown as one of the cheapest clothes retailers. 

Many brands may see customers leave for cheaper alternatives and end up in Primark, whose own customers may struggle to find lower prices elsewhere, so will continue shopping at the retailer, or cut back on clothes. 

‘Inflation will be the word of the day when ABF reports,’ said Laura Hoy, analyst at Hargreaves Lansdown. 

‘The buoyant half-year sales were back to pre-pandemic levels as stores reopened. The surge in demand fed through to a 92 per cent increase in operating profits but good times might not continue if rising costs continue to eat into margins.’ 

Inflation is at a 40-year high, hitting 9 per cent in April this year. New figures for May from the Office for National Statistics are out next week. 

The high cost of energy is also feeding into business supply chains around the world. 

Primark is no different. Bosses have already said that prices will need to rise this autumn to make up for soaring costs. 

Hoy added: ‘Demand this year in the face of the current cost of living crisis will give us an idea of how resilient customers are.’ ABF also owns brands, such as Twinings tea. 

Advertisement

Share or comment on this article:

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • google search engine seo tutorial for beginners
  • Dividend stocks for beginners profit from investing
  • How to earn from Tiktok
  • Learn to profit from gold trading
  • How to invest money and make it work for you
©2023 | Design: Newspaperly WordPress Theme