The owner of popular retail chain Primark, Associated British Foods, has reported a significant increase in sales and profits, despite recent price hikes. Sales rose by 16% to £19.7 billion, while profits jumped by 25% to £1.3 billion. Chief executive George Weston attributed the success to shoppers continuing to visit Primark stores and make purchases, even in the face of rising prices. Weston also noted that the decline in eating out has led to a rise in sales of food brands and inexpensive treats, such as lipstick and make-up.
Shoppers Remain Loyal to Primark Despite Higher Prices
Despite raising its prices by 12% over the past year, Primark has managed to maintain a strong customer base. The company has faced higher costs for ingredients, textiles, shipping, and labor, leading to the price hikes. However, Weston stated that inflation is easing and there are no plans for further price increases at Primark this year. The retailer has also resisted the trend of online shopping, with Weston emphasizing the importance of customers visiting their stores.
Christmas Sales of Jumpers and Party Outfits Already Strong
Weston revealed that sales of Christmas jumpers, pyjamas, and silver party outfits are already performing well. He attributed this to people spreading their festive spending over multiple paydays. Primark's recent collaboration with pop star Rita Ora has also helped drive sales. The retailer currently has 432 large stores worldwide and remains committed to its high street presence.
MPs Support New Class Action Case Against Banks for PPI Claims
Members of Parliament have written to high street lenders, warning them not to hinder a new class action case regarding Payment Protection Insurance (PPI) claims. The case, led by law firm Harcus Parker, accuses banks of charging an 80% commission on PPI sales and not refunding it in previous compensation claims. MPs on the All Party Parliamentary Group on Fair Business Banking are backing the cause, urging banks to efficiently handle any backlog of data subject access requests.
Pizza Express Owner Withdraws Bid for Wagamama Takeover
Wheel Topco, the owner of Pizza Express, has decided not to make a rival bid for noodle chain Wagamama. This comes after Wagamama accepted a £701 million offer from private equity firm Apollo. The Restaurant Group, which owns Wagamama, saw its shares fall by 2.71% following the news. The decision was attributed to market conditions.
Persimmon Reduces Number of Homes Built Due to Mortgage Costs
Housebuilder Persimmon has significantly reduced the number of homes it has built as higher mortgage costs dampen demand. The company reported a 37% decrease in the number of homes built compared to the previous year. It expects to build 9,500 homes this year, down from 14,868. Persimmon stated that mortgage conditions are likely to remain uncertain in the coming year. However, analysts predict that the Bank of England will not make many more rate increases.
Halifax Reports 1.1% Rise in House Prices in October
According to Halifax, the UK's largest mortgage lender, house prices increased by 1.1% in October, marking the first rise in six months. The average property price is now £281,974, although it is still down 3.2% compared to last year.
Naked Wines CEO Ousted as Sales and Profit Forecasts Fall
Nick Devlin, the CEO of online wine merchant Naked Wines, has been removed from his position after the company slashed its sales and profit forecasts. Investors were warned of a 10% fall in profits, while the company's US arm experienced an even greater slump, with shares falling by over a third. Naked Wines' chairman, Rowan Gormley, will take temporary control of the company.
