Primark warns of losses due to Covid-19 lockdowns in the UK
Nov 2, 2020
Associated British Foods, the owner of fast-fashion retailer Primark, has issued a statement predicting it will lose 375 million pounds due to the coronavirus lockdowns across England and Europe.
In light of increasing restrictions on retail trading in countries across Europe, due to Covid-19, Primark states that currently 19 percent of its total retail selling space is temporarily closed in the Republic of Ireland, France, Belgium, Wales, Catalonia in Spain and Slovenia.
With the UK government announcing its intention to close non-essential shops in England for one month from November 5 to December 2, this will result in 57 percent of Primark’s total selling space being temporarily closed from November 5.
As Primark does not sell online it is producing that its estimated loss of sales for these stores, including the stores in England, for the period of closure will be 375 million pounds.
It says all orders placed with suppliers will be honoured. It also added that it was implementing the operational plans developed to manage the consequences of these closures and "appropriate action will be taken to reduce operating costs”.