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Primark owner says customers face difficult choices as costs rise | Primark owner says customers face difficult choices as costs rise |
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The owner of Primark has warned consumers face tough choices on "what they spend and where they spend it" as it reported a big rise in sales. | The owner of Primark has warned consumers face tough choices on "what they spend and where they spend it" as it reported a big rise in sales. |
Associated British Foods (ABF) said higher costs, rising interest rates and "general economic uncertainty" were making consumers cut back. | |
ABF said that it would not push up prices for clothes at Primark by more than already planned. | |
Sales at Primark rose to £7.7bn in the year to September, up 43% year-on-year. | |
But ABF warned that group profits could fall this year. | But ABF warned that group profits could fall this year. |
In its full-year results, ABF said that the retail sector had started to recover from lockdowns seen during the coronavirus pandemic, but "the full consequences of the current cost-of-living crisis remain uncertain." | |
ABF said that it would not push up prices for clothes at Primark by more than already planned in an attempt to keep a hold of its reputation for cheap, on-trend, fashion. | |
The company said: "Given a context of a likely reduction in consumer disposable income we have decided this year not to implement further price increases on the autumn/winter and spring/summer ranges beyond those already implemented and planned. | |
"We believe this decision is in the best interests of Primark." | |
It had previously come under fire on social media as shoppers posted videos and photos of stickers with new, higher prices, being added to labels. | |
George Weston, the boss of ABF, said that although the company faced rising costs of materials and energy too, it wanted to "stand by our customers". | |
AB Foods said that overall revenue - including its food and sugar divisions - reached £17bn, up 22% while pre-tax profit grew by 48% to £1.1bn. |