The closure of Primark stores led to 17 per cent drop in revenues of its parent company Associated British Foods in the first half.

As per Fashion Network, the company’s revenues fell to £6.313 billion and adjusted operating profit fell by 46 per cent to £369 million in the 24 weeks to the end of February. Pre-tax profit fell 8 per cent to £275 million.

With Primark having no online operation to fall back on, the closure of it shops has meant the business effectively went into hibernation in multiple markets. But the company remains committed to its business model.

In the past year, Primark has lost £3 billion+ worth of sales and £1 billion+ of profit. It has also seen huge cash outflows with a £650 million outflow in the first half of this year alone”. Over the six-month period, Primark saw 40 per cent revenue decline to £2.232 billion. And it’s adjusted operating profit declined by 90 per cent to £43 million.

It was hit hard by UK and European lockdowns, but there was no point at which all of its shops were shut, unlike in the first wave of lockdowns. The company estimates that H1 ‘lost’ sales of £1.1 billion during closures, and restrictions while they declined by 15 per cent when stores reopened.