Cut-price apparel seller Primark anticipates that store closures during COVID-19 will cost it $1.4 billion
- British style giant Primark’s sales were down 30% year-on-year in the quarter, its moms and dad company said.
- More than 75% of its shops are presently closed.
- Primark’s overall loss from store closures could reach ₤ 1.05 billion ($ 1.43 billion), it said.
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Store closures could cost British fast-fashion huge Primark ₤ 1.05 billion ($ 1.43 billion) in lost sales, parent business Associated British Foods (AB Foods) announced Thursday
More than three in 4 of the merchant’s 389 shops are currently closed, AB Foods said. This consisted of all 190 stores in the UK, along with all its sites in Germany, Ireland, the Netherlands, Portugal, and Austria. Its 11 stores in the US remain open.
Under existing lockdown guidelines, all non-essential stores in England must remain closed till a minimum of mid-February, Prime Minister Boris Johnson said last week. Other nations have actually carried out similar steps in reaction to rising COVID-19 cases.
If stores that are currently closed remain shut up until February 27, the overall lost sales triggered by momentary closures throughout the pandemic might reach about ₤ 1.05 billion ($ 1.43 billion), AB Foods stated.
In December, prior to England’s new national lockdown being announced, it had estimated this figure at ₤650 million ($887 million).
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Primark, which shuns online sales in favor of bricks-and-mortar shops, reported falling sales in the previous quarter.
In the 16 weeks to January 2, Primark’s sales were down 30% year-on-year, AB Foods stated. It attributed this to lockdown procedures both in the UK and its global markets, varying from limited trading hours to required store closures.
The company kept in mind that when stores were open, “trading was strong offered the situations,” with a 14% drop in like-for-like sales compared to the very same duration the previous year.
But efficiency differed between shops, AB Foods stated. Sales at its shops in retail parks were up year-on-year, while shopping mall and large city-center stores fared worse because fewer commuters and travelers visited them, it said.
Primark isn’t the only British apparel seller having a hard time during the pandemic.
Topshop owner the Arcadia Group fell under administration in late November, putting more than 13,000 jobs at danger. Its CEO blamed required store closures throughout the UK’s nationwide lockdowns.
The next day, British department shop chain Debenhams stated it would close all of its 124 shops as it goes into liquidation, with 12,000 tasks at threat.
( the headline, this story has actually not been released by Essential India News staff and is published from a syndicated feed.).