14th July 2011
The Telegraph said revenue at Primark, which is part of Associated British Foods, grew15% in the third quarter, despite cutting its profit margin to absord rising cotton costs and keep cost down for customers.
Primark's shares rose 5% to £11.10 – making it the largest riser in the FTSE 100. Analysts were quick to brand the company a 'defensive' bet in a tough market.
Online fashion retailer Asos, also reported a 15% increase in UK retail sales to £44.6m in the three months ending June 30: although this was down on a 24pc rise in the previous quarter.
Nick Robertson, chief executive, said: "The new financial year has started well and we remain positive in our outlook for 2012, with progress to date in line with expectations."
On the Telegraph comment boards, readers were – it appears – not those who have helped either retailer increase sales.
Wilfulsprite wrote: "Personally I cannot understand the obsession with Primark – the clothes aren't really that cheap, they fit badly, and are made in foreign sweatshops. Still, the only things that can survive the high street costs these days are mobile phone shops, bud"get shops and luxury goods shops.
BrownTrousers added: "So generally people are only spending at the cheapest possible places, eh? I expect Aldi, Netto and Lidl are all doing well too."
Gswanson didn't believe the results were that notable and had their own suggestion for saving the UK economy: "Hardly good news: the success of Primark only underlines the fact that people are seeking rock-bottom prices to eke out their dwindling disposable incomes – either that, or buying less, as stores like M&S see like-for-like sales falling.