Tue, 04 Nov 2025

Tue, 04 Nov 2025 Primark's UK sales fall as owner explores spinning off fashion retailer

ABF explores spinning off Primark chain from food brands as UK shoppers cut back on fashion purchases

* Primark saw a 3.1% fall in like-for-like sales in the UK due to weak consumer confidence.
* Associated British Foods (ABF) expects the subdued retail market to impact Primark sales into 2026.
* ABF reported a 13% drop in profits to £1.4bn for the year.
* The company is considering splitting off Primark from its food business, citing the "subdued" retail market and desire for a more focused focus on Primark's growth prospects.
* Analysts suggest that Primark could command a higher share price as a standalone company separate from its food business.
* The news comes amid a challenging environment for retailers in the UK, with inflation holding at 3.8% and consumer spending under pressure.
* Chancellor Rachel Reeves is expected to raise taxes in the upcoming Budget, which could worsen Primark's challenges in the UK.
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