Primark-Owner Expects £375 Million of Sales Lost From Lockdowns

LONDON, United Kingdom — Associated British Foods, the owner of clothing retailer Primark, said it estimated it would lose £375 million ($484 million) of sales from temporary closures of its stores in major markets due to Covid-19 restrictions.

It said as of Monday, all Primark stores in Ireland, France, Belgium, Wales, Catalonia in Spain and Slovenia are temporarily closed, representing 19 percent of its total retail selling space.

It said assuming the UK government's intention to close non-essential shops in England for one month from 5 November to 2 December is passed by lawmakers, 57 percent of its total selling space will be temporarily closed from 5 November.

Primark, which does not have an online operation, had been trading strongly after its stores reopened after lockdown in the spring, achieving record market share in August and early September.

The company said it was implementing operational plans developed to manage the consequences of the latest closures, including reducing operating costs.

It said all orders placed with its suppliers would be honoured.

The recovery it had seen in demand prompted the company to upgrade its forecast for profit for the chain in the year to September 12, which it will publish on Tuesday.

It said adjusted operating profit for Primark would be above its previous range of £300 to 350 million ($396 to $462 million), down from £913 million the previous year.

By Paul Sandle; editor: James Davey.