Kicking for Peacocks as Primark sales soar

Primark, the discount fashion chain owned by Associated British Foods, put another nail in the coffin of its collapsed rival Peacocks today by posting soaring sales over the Christmas period.

John Bason, the finance director of ABF, the sugar-to-grocery conglomerate, declined to comment on yesterday's administration of Peacocks but said that Primark had "taken market share" from across the sector over the 16 weeks to 7 January.

Primark, which has 232 stores in Europe, including in Spain and Germany, grew total sales by 16% over the period, boosted by new stores. Analysts at Credit Suisse estimated that Primark's like-for-like sales grew by 2%, with a "soft autumn" more than offset by a storming Christmas.

Industry experts believe that, while the fate of Peacocks was ultimately sealed by its £240 million of debt, the Cardiff-based chain struggled to compete against Primark.

But Primark said its operating margin was lower over the period, reflecting higher cotton costs.
The chain hopes to open a huge shop by London's Tottenham Court Road Tube station before the Olympics.

Group revenues at ABF, which produces sugar and owns the Twinings Ovaltine brand, rose by 12%.