Primark says trend for comfort wear has continued

Primark says the trend for "comfort wear" has continued through the summer, with strong sales of leisurewear such as leggings and cycle shorts.

Demand also rose for seam-free matching separates for women, as many people stayed in the UK for their holidays.

However, sales at Primark were lower than expected, with sales in June and July being affected by the "pingdemic".

Despite this, Primark owner Associated British Foods said its profits were set to beat expectations.

The discount retail chain said it had enjoyed very strong trade in the third quarter of its financial year, which coincided with the relaxation of Covid measures, but then conditions became tougher.

"In the UK our sales were affected by the rapid and significant increase in late June and early July in the number of people required to self-isolate following contact tracing alerts - the 'pingdemic'. Data shows that High Street footfall was impacted by the caution displayed by many consumers at that time."

However, after self-isolation rules were eased in early August, Primark said it saw a "consistent improvement through the period from a decline of 24% in the first four weeks of the quarter to a decline of 8% in the last four weeks".

Primark's sales for the second half of its financial year are expected to reach £3.4bn. It said sales of its autumn and winter ranges were doing well, and it had seen strong demand for its back-to-school products.

Outside the UK, Primark said that in France the launch of a Covid health pass in August led to a drop in shopper numbers, while travel restrictions affected sales in Spain and Portugal.

Gemma Boothroyd, an analyst at investment platform Freetrade, said: "Even with dwindling in-store sales, Primark has managed to maintain its market share compared to the same period two years ago.

"That's a notable feat given the number of new digital entrants, who would have been primed and ready to steal some of its customers during lockdowns."

However, competition from fast fashion retailers online, who have seen significant growth through coronavirus lockdowns as consumers changed their shopping habits, is a threat to Primark, Ms Boothroyd added.

"[Primark's] website is more of a tool for shoppers to check in-store inventory prior to hitting the shops. If anything, this seems likely to result in decreased sales for the brand," she said.

"For now, Primark's proven it has staying power, but if it's finally going to go digital, it needs to do it right. Otherwise, it's going to find itself in an omnichannel no man's land."