By bizn_fun 
Chief executive George Weston said though he was “confident” for 2026, it depended on the “consumer environment” which was was “particularly unpredictable at the moment”.
Shoppers have been tightening their belts amidst cost increases from rising inflation, leading them to spend less on things like fashion and turning to even cheaper competitors such as Shein and Temu.
Inflation, the rate at which prices rise, has held stubbornly at 3.8% for the year to September. Although inflation is down from highs seen in 2022-2023, it remains above the Bank of England’s target of 2%.
Randeep Somel, fund manager at M&G Investments told the Today programme the decline of Primark sales showed “the consumer is staying at home and seeing how the Budget goes at the end of this month”.
The Associated British Foods boss said in a call after the financial results that there was a “working assumption” in ABF that a separation of Primark “is where we would like to get to”, although no decision had been made.
The news comes as a series of casualties on the UK high street continue as the costs of maintaining bricks-and-mortar stores becomes too high amidst rising online competition and pressure on consumer spending.
Recent retail names that have had to close stores or enter administration include Bodycare, Claire’s, and Pizza Hut which said it will be slashing the number of restaurants it operates.