Retail blues reported by Primark
Comments Off Retailer Primark has revealed a “noticeable” slowing of demand in the UK since the start of 2011, reports the BBC.
In a trading update, owner Associated British Foods said Primark performed well before Christmas despite the bad weather.
But January’s rise in VAT and soaring cotton prices had helped contribute to the slowdown since then.
ABF shares fell nearly 6%, despite the firm saying that Primark stores in the rest of Europe were doing well.
In early afternoon trade their shares were down by 61 pence, or 5.99%, at 965.50p.
“The UK consumer is feeling a squeeze because of inflation and the VAT rise, and simply has less to spend,” ABF’s finance director John Bason said.
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