Primark sales on the rise as retailer prepares for US launch

Primark's parent company Associated British Foods (ABF) announced today that the fashion retailer is expected to report a 13% increases in sales for the 12 months to 12 September, off the back of a 9% year-on-year rise in selling space.

A pre-close period trading update from ABF, ahead of a full results announcement on 3 November, indicated that Primark sales on a like-for-like basis are expected to be 1% ahead of last year.

Primark will open its first US store, in Boston, on 10 September, and the warehouse it will use to serve the store – located in Bethlehem, Pennsylvania – is now fully operational ahead of launch day. Indeed, the retailer detailed today how "significant investment" has been made in warehouse infrastructure across its global territories, with further expenditure planned for 2015/16.

In total, Primark will have increased its warehouse capacity by two-thirds thanks to the doubling in size of its warehouse in Torija, northern Spain and the development of its Mönchengladbach facility in Germany. There has also recently been a warehouse opened in Bor, on the western border of the Czech Republic, while next year will see the relocation of the fashion retailer's Magna Park UK warehouse to a larger site at Islip in Northamptonshire.

Behind-the-scenes infrastructure will be key for the retailer as it looks to grow its store portfolio even further in the years ahead.

Some 1.5 million sq ft of new store space is scheduled for the new financial year, notably through the planned seven shops in north-east US, but also in the UK and Spain. Meanwhile, the retailer will also open in Lyon, Nice and Toulon, following a positively received recent launch into France, alongside the opening of a first Italian store just north of Milan in the early summer of 2016.