Primark is intensifying programs to increase levels of organic and sustainable product in its stores. The retailers is increasing five-fold its sustainable cotton program so that by 2022 it will have trained 1,60,000 farmers in India, Pakistan and China in more sustainable farming practices.
The Primark price point is such that it continues to draw customers in. Primark, which trades from 376 stores but does not have an online offer, generates about half of AB Foods' revenue and profit. The group also owns major sugar, grocery, agriculture and ingredients arms. Its reported revenue rose four per cent year on year on a constant currency basis in the 16 weeks to January 4. 2019. Primark sales rose 4.5 per cent on the same basis, driven by new store openings. Like-for-like sales growth was flat. In the UK, Primark's sales rose four per cent, with a marginal decline in like-for-like sales but a gain in market share. Primark also achieved like-for-like growth in the euro zone and in the United States, where it is looking to open more stores.
Major UK store groups are not expecting a bounce in consumer spending in 2020 after a subdued Christmas, partly blaming continuing Brexit uncertainty.
