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ABF warns Primark store closures will cost £650m a month in lost sales

By BFN News | 07:33 AM | Monday 23 March, 2020


Associated British Foods said it would lose £650m a month in sales following the closure of all of its Primark budget fashion stores in the UK as the country stepped up measures to contain the outbreak of the Covid-19 outbreak. Primark on Sunday closed all of its stores in the UK, which represented 41% of sales and a loss of some £650m of net sales per month. The retailer also informed suppliers that it would stop placing new orders. The company said, however, it would take measures, including cost cuts, to mitigate the impact of the lost sales. 'We have implemented a significant reduction in discretionary spend. We are making good progress in also reducing fixed costs following discussions with counterparties, in particular landlords, and welcome the recently announced government support in the countries in which our stores operate,' ABF said. 'As a result, we currently estimate being able to recover some 50 percent of total operating costs.' 'Importantly, we reiterate that in aggregate, we have not seen a material impact in our sugar, grocery, ingredients and agriculture businesses,' it added. Story provided by StockMarketWire.com

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