Primark’s owner has warned an enforced closure of its stores as part of new lockdown measures in England could result in a £375million loss from sales.
Associated British Foods (ABF), which owns the discount fashion brand, said if parliament approves a lockdown in England, which would include the closure of non-essential shops, 57 per cent of its selling space estate would be temporarily shut.
Currently, all the chain’s stores in Ireland, France, Belgium, Wales, Catalonia in Spain and Slovenia are temporarily closed.
It also said trading hours were also restricted in a number of its other markets and “uncertainty” about further temporary store closures in the short-term remained.
A spokesperson said: “We are implementing the operational plans developed to manage the consequences of these closures and appropriate action will be taken to reduce operating costs.”
The store-only retailer said all orders placed with suppliers would be honoured.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said Primark could now “regret” its resistance to creating an online presence.
“It can't make up the shortfall in digital sales. Already 19 per cent of its stores have been forced closed, due to lockdowns across Europe,” she said.
“It's easier for the company to assess the potential damage given that Primark sales took a huge hit earlier in the year during the first lockdown.
“Pent-up demand for fashion saw customers flood back in the summer but that profit would be wiped out, if doors are locked during the key Christmas period.
“The group's food orientated operations could benefit from consumers being stuck at home again, opting for trusted brands, but ABF's substantial cash pile will come in very handy if Primark's business takes this big hit. ''
Shares fell two per cent on the news.
