Primark today said Covid-19 lockdowns across the UK and Europe will mean 57% of its total store space will be closed by Thursday, wiping £375 million off its sales for the expected closure period
The company’s shops are already shut in Ireland, France, Belgium, Wales, Catalonia and Slovenia, representing 19% of its selling space, while this week’s UK closures will take its shutdown to over half of the estate.
The company owned by Associated British Foods added that trading hours were also restricted in a number of other markets.
“Uncertainty about further temporary store closures in the short-term remains,” it said.
Primark is set to be hit by the latest Covid restrictions
PADespite the disruption, the company held out some good news for those in its supply chain as it said it would still honour orders already placed.
Companies reliant on retailers and leisure operators for their revenues have been fearing huge consequences from the UK lockdown as sales get cancelled.
From logistics firms to fashion and homewares suppliers to food and drink firms serving the catering trade, another month of lockdown will come as a hammer blow.
Primark said it would be cutting costs to absorb the impact of the lockdowns.
The group is in the relatively fortunate position of having a stable food ingredients business to offset the impact on its retailing arm.
Today it said it had net cash before lease liabilities of £1.6 billion.
Excluding debt, the group had gross cash before lease liabilities of £2 billion which, together with £1 billion left undrawn from its revolving credit facilities means it has £3.1 billion of group liquidity.
