The owner of Primark has said it will take a £375 million hit from the loss of sales due to the latest enforced closures in the face of Covid-19.
Associated British Foods (ABF) said around 57% of selling space in its Primark stores will be temporarily closed if Parliament approves plans to shut non-essential shops for a month from Thursday November 5.
The company said all Primark stores in the Republic of Ireland, France, Belgium, Wales, Slovenia and Catalonia in Spain are already temporarily closed, representing 19% of selling space.
ABF also told investors that its trading hours have been restricted in a number of other key markets.
“Uncertainty about further temporary store closures in the short-term remains,” it added, in a statement to the London Stock Exchange.
The retail giant said it is implementing operational plans developed to “manage the consequences of closures” and is taking action to reduce its operating costs.
GVC, the betting group behind Coral and Ladbrokes, has warned it could take a profit hit of £34 million if all its high street betting stores are forced to close for the entire month during the Government’s announcement of a second lockdown in England expected to come into force on Thursday.
The company said the impact from closures in other UK regions will be £27 million, and £10 million from the closure in other European countries already experiencing their own second lockdowns.
