{
  "id": 17929940,
  "title": "Primark sales slip ahead of ABF exit in ‘challenging’ backdrop",
  "url": "https://urgent.news/2026/11/03/primark-sales-slip-ahead-of-abf-exit-in-challenging-backdrop",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-03T07:40:22.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/primark-sales-slip-ahead-of-abf-exit-in-challenging-backdrop/"
  },
  "original_language": "en",
  "account": "Primark's sales have declined as its owner, Associated British Foods (ABF), works to improve the fast-fashion retailer ahead of its exit from the group next year. Like-for-like sales at Primark fell by 2.6% in the year to September, hindered by \"weak\" consumer confidence and less progress in turnaround efforts in Europe. ABF aims to position Primark for success before its demerger in December but acknowledged the challenge posed by a \"challenging consumer market\".\n\nABF's overall performance was impacted by a heavy loss at its sugar arm, leading to a pre-tax profit of £1.3bn, 10% lower than the previous year. The retailer's biggest market, Continental Europe, saw a 4.7% dip in sales, which dragged down Primark's like-for-like sales. The group blamed weak consumer sentiment and the early stage of commercial recovery for the decline in brand, marketing, and digital capabilities. Primark's UK and Ireland sales grew by 0.5% year-on-year, but like-for-like takings declined by 0.1% in the second half.\n\nABF is focusing on enhancing Primark's womenswear range and its presence in the UK. The retailer recently introduced home delivery services. ABF's food operations were affected by US consumer weakness and lower European sugar prices. The sugar arm, which has been a source of concern, recorded an adjusted operating loss of £47m due to lower sugar prices. Hot weather negatively impacted sales of Twinings tea in the UK and France, but a new cold tea range helped sales in Australia.\n\nABF's grocer businesses saw a 3% increase in revenue to £4.2bn, while adjusted operating profit dropped by 10% to £383m. Despite the profit dip, Weston highlighted encouraging growth across multiple brands and businesses, driven by product innovation, marketing, and targeted acquisitions. Analysts at RBC noted that consumer sentiment is cautious due to a tougher macro and competitive environment, especially outside the UK.",
  "summary": "Primark has seen its sales slip as its owner, Associated British Foods, races to shape up the fast-fashion retailer ahead of its exit from the group next year. Like-for-like sales at the retailer slipped by 2.6 per cent in the year to September, dragged down by “weak” consumer confidence and less advanced turnaround efforts in [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}