Primark, the Irish clothing retailer has said that it will continue to provide affordable fashion to the masses. Associated British Foods plc (ABF), the parent company of the bargain superstore has said that uncertainty around the pound following the results of the EU referendum meant that their profit has dropped. Many of the goods sold in Primark’s three-story shop in Coventry’s Broad gate are brought from the United States after paying in dollars. A weak pound against the dollar means Primark’s buyers have to pay more for those goods.
In a statement, ABF said, ‘The transactional impact on Primark’s margins from the weakening of sterling against the US dollar, particularly since the EU referendum, will have no effect in this financial year as a result of our practice of taking out forward currency contracts when garment purchase orders are placed. However, at the current exchange rates, margin will be adversely affected in the new financial year.’ ‘Primark is committed to leading the value sector of the market with its on-trend product offering and maintenance of its price leadership position in clothing,’ the statement continued. Primark is operating in Austria, Belgium, France, Germany, Ireland, Portugal, Spain, the Netherlands, the United Kingdom, the United States and Italy.