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AB Foods says fifth of Primark store space shut on virus fears

Published 16/03/2020, 08:12
© Reuters. Shoppers walk past a Primark store on Oxford Street in London
ABF
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(Reuters) - British retail chain Primark has shut down 20% of its store space and will not provide a full-year forecast due to the impact of the coronavirus pandemic, its owner Associated British Foods (L:ABF) said on Monday.

The company had expected sales of 190 million pounds ($234.59 million) from the stores over the next four weeks and said they would stay shut until governments permit them to re-open.

"The remainder of the estate, including the UK which represents 41 percent of sales, has seen like-for-like sales declines over the last two weeks and these have accelerated over the past few days as a result of reduced footfall," the company said.

Shares in the company were down 5.1% at 1,741.5 pence.

AB Foods, which sources more than 40% of Primark's product from China, said most factories supplying to the chain had re-opened and it expects minimal supply shortages from the country.

The company said it had not seen a material impact in its sugar, grocery, ingredients and agriculture businesses, but added that it doesn't expect to recoup the sales lost because of store closures.

© Reuters. Shoppers walk past a Primark store on Oxford Street in London

AB Foods also raised its forecast for first-half adjusted operating profit, mainly due to higher margins for its Primark and grocery businesses.

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