Primark's Sales Soar By 25% Following A Strong Christmas Period

Primark has emerged as one of the big winners from the Christmas shopping period, as cash-strapped consumers continue to vote with their feet in value-clothing stores.

Owner by Associated British Foods, which also owns Twinings, Ovaltine, Ryvita and Jordans, saw it's revenue increase by 10% over the Christmas period, but the majority of the sales came from Primark's success.

The clothing retailer's success is partly due to its expansion of stores - 14 new openings took place during the period, with six opened in Spain, four in the UK, one in Germany, one in the Netherlands and two in Austria.

It should also be noted that like-for-like sales figures look particularly good as Primark only had an average 2011, and 2012 saw a drop in cotton prices, which helped it manage its costs.

Despite the soft comparisons, analysts were impressed by Primark's performance, which outshone expectations.

"Even allowing for an easy Autumn comparison (2011 was unseasonally warm), this performance is well ahead of expectations," wrote Panmure Gordon analysts in a research note.

Nick Hood, business analyst at Company Watch, told the Huffington Post UK: "The surge in festive sales at Primark is the clearest indication that the clothing market has polarised into three clear sectors.

"Luxury brands like Burberry have prospered despite the economic climate, boosted as well by high spending tourists in London. Mid market offerings such as French Connection have taken a beating, especially those punished for holding back on discounts to protect margins.

"But now it seems that value propositions have captured the lion's share of UK shoppers' squeezed budgets, with Primark emerging as the clear champions."

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