Associated British Foods plc is expecting a £375m loss of sales from its Primark stores over the lockdown period.
Yesterday’s update followed the government’s announcement of its intention to close non-essential shops in England for one month from 5 November to 2 December.
“As of today, all Primark stores in the Republic of Ireland, France, Belgium, Wales, Catalonia in Spain and Slovenia are temporarily closed, which represent 19 per cent of our total retail selling space.” the company said.
According to Associated British Foods plc – which also owns businesses in the sugar, agriculture and grocery sectors – this means 57 per cent of its total selling space will be temporarily closed from 5 November.
And, annual results published by the group today (3 November) show that statutory operating profit for the year reduced to £810m from £1,282m last year, “driven by the reduction in adjusted operating profit and an increase in the next exceptional charges”.
Commenting on the results, George Weston, chief executive of Associated British Foods, said: “I am proud of how our people have responded to the many challenges presented by COVID-19. Throughout, we have provided safe, nutritious food under the most extraordinary conditions, proving the value and resilience of our supply chains.
“Following a three-month closure, Primark delivered a robust performance, receiving an overwhelmingly positive response when it safely welcomed customers back to its stores. Uncertainty about temporary store closures in the short-term remains, but sales since reopening to the year end of £2bn demonstrate the relevance and appeal of our value-for-money offering.”
The company said that it is implementing operational plans to manage the consequences of store closures and “appropriate action” will be taken to reduce operating costs.
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