Primark shuns Black Friday as sales bounce back
Trading at Primark stores has been "reassuring and encouraging" since they were allowed to reopen, bosses have said - sparking hopes of a swift recovery on the high street.
Sales were just 12pc lower in the seven weeks to June 20 than they had been a year earlier, bringing in £322m.
In the week ended June 20, Primark posted sales of £133m - with trading in England and Ireland ahead of the same week last year.
All of the chain's stores were shuttered in March as the pandemic accelerated across Europe. Unlike most rivals it does not sell online, meaning revenues ground to a total halt during lockdown.
Sales plummeted 75pc in the three months to June 20 as a result, and it expects profit to slump by around two-thirds this year to £350m.
However, the majority of shops are now trading again – earlier than expected – with all 153 stores in England back in business.
Despite a rapid pick-up, Primark's parent firm Associated British Foods (ABF) warned that city centre outlets are lagging behind regional stores as nervous shoppers stay close to home.
It said: "Most of our regional stores are performing well, especially in retail parks. Our stores in the centre of big cities are suffering from the current absence of tourism and much lower commuter footfall."
The company does not intend to take part in the Black Friday bargain sales bonanza, despite having lost £1.5bn in sales in lockdown as shoppers return to its stores.
Finance chief John Bason said it did not discount before the crisis hit and will not change tack because of coronavirus even though it haemorrhaged cash when all its 365 stores were forced to shut.
The chain cannot afford to discount its already cheap products because it would dents its profit margins, he said. It refuses to sell online for the same reason.
Mr Bason said: "Have we lost sales? Yes. Have we lost out [by not selling online]? Home delivery for £1, £2, £3 products, we can't do it at a profit, nobody can.
"That’s the point. We are selling essentials at the best prices. Have we changed our views? No."
Most of Primark's competitors started discounted heavily as branches reopened in an effort to shift mountains of unsold spring and summer stock.
Analysts at Jefferies said: "Today's third quarter results highlight a company past the trough of sales... One set to benefit from its position as a value leader.
"A store portfolio now almost completely reopen will anchor more robust trading in the fourth quarter."
Shares rose 7pc to £21.01 in early trading.
