Primark’s owner Associated British Foods trade in Q4 exceeded expectations. In the latest four-week UK market data for sales in all channels, Primark achieved its highest-ever value and volume shares for this time of year.

Its cumulative sales since reopening to the year-end are expected to be £2 billion and Primark’s own adjusted operating profit on an IFRS16 basis for the year, before exceptional items, is now expected to be at least at the top end of the previously advised £300 million-£350 million range.

The company also said the average basket size was initially significantly higher, reflecting some pent-up demand. And while this outperformance has reduced in recent weeks, it remains higher than a year ago. Primark has managed to avoid an excessive level of markdowns too.

Sales in retail parks are higher than a year ago. Shopping centre and regional high street stores are broadly in line with last year. But large destination city centre stores, which are heavily reliant on tourism and commuters, have seen a significant decline in footfall. Its 16 largest destination city centre stores contributed 13 per cent of total sales pre-COVID and only 8 per cent of sales after reopening.

Meanwhile sales in Europe are expected to be 17 per cent lower on a like-for-like basis, reflecting increased public health restrictions, particularly in Spain and Portugal. Again, the city centre impact is key and excluding its 11 destination city centre stores, like-for-like sales are down 13 per cent. Sales in the US are expected to be 9 per cent lower on a like-for-like basis but are actually 2 per cent ahead excluding its Boston store.