Primark enjoys a Brexit sales bounce

There was no Penney pinching in its stores over Christmas...

Primark has announced that in enjoyed a sales bounce of 22% last year at actual exchange rates - when currency fluctuations are not taken into account sales grew by 11%.

This came as the firm added significant new retail space as it continues to expand at home and abroad. Its total retail space grew by 16% in the 16 weeks to January 7th.

15 new stores were opened in the period including outlets in Dublin's Liffey Valley, as well as new shops across the UK, in the US, and the Netherlands.

Its new Liffey Valley store houses 53,900 square feet of retail space over three floors. It is part of a new western end €26m investment for Liffey Valley Shopping Centre’s retail, leisure and community facilities, including six new restaurants, a cinema upgrade, and a new civic space.

Sales did drop slightly in the Netherlands and Germany.

Primark hopes to add an additional 1.3 million sq ft of retail space in the current financial year.

However - its operating profit margin is set to decline as the dollar's revival has an impact on input costs.

Penneys / Primark has promised to not raise prices as its margins are squeezed - while retailers like Next have warned that their prices will rise by up to 5%

Primark is owned by Associated British Foods - its other interests include groceries and sugar. Its overall revenue grew by 10% on a constant currency basis.

"As a result of the weakening of sterling in late summer last year, sales from continuing operations at actual exchange rates were strongly ahead with a 22% increase," ABF said in a statement.