Primark sales slip ahead of ABF exit in ‘challenging’ backdrop

Primark has seen its sales slip as its owner, Associated British Foods, races to shape up the fast-fashion retailer ahead of its exit from the group next year. Like-for-like sales at the retailer slipped by 2.6 per cent in the year to September, dragged down by “weak” consumer confidence and less advanced turnaround efforts in its European market. Consumer giant ABF is racing to put Primark on a solid footing ahead of its demerger in December next year but told shareholders on Tuesday that these efforts are coming up against a “challenging consumer market”. ABF’s overall performance was dragged down by a heavy loss at its sugar arm, as the FTSE 100 group slipped to a pre-tax profit of £1.3bn, 10 per cent lower than last year. Primark s drop in like-for-like sales was blamed on a 4.7 per cent dip in Continental Europe. This is the retailer’s biggest market, accounting for 47 per cent of its sales. The group said its sales declined in this market because “consumer senti