Primark hopes for a bumper Christmas despite budget misery on the High Street

Primark boss expects a bumper Christmas despite “particularly painful” High Street budget.

George Weston, chief executive of the fashion retailer’s parent company, Associated British Foods, said it was in “very good shape” as it enters its busiest trading period.

“Our ranges are the best ever, whether it’s for party items, basics or jumpers to give your dad,” he declared.

“The stores look fantastic and I think we’re going to have a good Christmas.”

He said ‘fam jams’ (matching holiday pajama sets for the whole family) are expected to disappear from shelves.

The upbeat tone came as AB Foods posted a 4 per cent rise in annual revenue to £20 billion and a 43 per cent rise in profits to £1.9 billion.

Primark’s business saw a 6 per cent rise to £9.4bn, while adjusted operating profits rose 51 per cent to £1.1bn.

Shares in AB Foods, which also owns brands such as Ovaltine, Ryvita and Twinings and has a major agricultural arm that sells animal feed to farmers, rose 3.2 percent.

Weston’s optimism came despite warnings that the Budget’s policies will add “several tens of millions” of pounds to the group’s costs through increases in the minimum wage and national insurance contributions paid by employers.

He also criticized Labour’s “ill-judged” proposed reforms to the business rates system, which will mean higher bills for its most valuable city center shops.

He said: “It’s pretty clear to me that this is a budget where the burden of tax increases falls on businesses – within that, it has fallen especially on the high street.”

But he said Primark would likely benefit from minimum wage increases as it would put more money in the pockets of many of its customers.

Weston promised there is “no intention” to raise prices for the rest of the year. The group said it would “focus on driving cost optimization and efficiency”, including with the introduction of self-service checkouts and energy savings.

Primark has benefited from ranges led by singer Rita Ora and agreements with Disney.

But wet spring and summer weather slowed sales in the UK and Ireland.

“However,” said a spokesperson, “we have had a very encouraging start to sales for our autumn/winter range.”