Primark set to cut 400 store managers

AROUND 400 store management jobs are to go at Primark as the company moves to “simplify” its operations.

Parent company ABF is in consultation with the affected staff — it employs 29,000 in all.

That news came as Primark reported sales up 36% in the quarter to January, compared with a year ago. Sales are down 11% on a like-for-like basis with two years ago, however.

Retail analyst Nick Bubb said: “Primark was again disadvantaged by the swing back to online spending in the Omicron surge, but its stores are still popular shopping venues.”

ABFfinance chief John Bason reckons the shops are poised to go boom. He told the Standard: “The UK in particular seeing a pick-up in consumer confidence. Omicron was a bump, but the removal of restrictions will improve confidence, we will see more people back in the office and planning for holidays. Don’t underestimate the effect of that, people have been putting that off for two years.”

The food arm, which includes Silver Spoon sugar and Twinings tea, is seeing “a lot of inflation” he admitted, some of which is bound to be passed on.

Laura Hoy, equity analyst at Hargreaves Lansdown, said: “ABF’s diversified business offered a safety net in the pandemic, but as things normalise all eyes are on retail for signs of a comeback.” Shares fell 38p to 2093p.