Primark Eyes Independent Expansion After Reporting Steady Sales Year

Primark reports a flat sales performance at the end of its 2025 fiscal year. The Irish low-cost fashion company posted a turnover of 9,489 million pounds ($12.4 billion), 0.4% more than last year, when it closed the year with a turnover of 9,448 million pounds. Its operating profit was 1,120 million pounds ($1.47 billion), 1.8% more than in 2024. This was reported by its owner, Associated British Foods, in a statement on Tuesday, when it became known that the group would be weighing the possibility of separating Primark from its other businesses.

Sales in the UK and Ireland have fallen 1% this year, although they still account for 45% of the business. However, Europe continues to be its main market, accounting for 49% of the total, with a 2% increase in turnover. In the United States, Primark has recorded a 20% growth, thanks to the opening of stores, which now total 33 establishments. The company claims to have already signed 18 leases to continue expanding in the country.

The giant points to a slowdown in consumption in the United Kingdom, which moderated in the second half of the year. However, it is pleased that in Europe, new openings partially offset a drop in comparable sales in the second half of the year. In this respect, Primark’s performance at a national level stands out. Spain and Portugal share 17% of the business, and have grown by 5% in turnover, while France and Italy remain the same, with 16% of sales. Northern Europe accounts for 13% of the total, with a 1% decrease in turnover.

Primark opened six stores in U.S and three in the U.K during the year

Primark’s investment this year was 497 million pounds ($652 million), including openings. In total, Primark opened 23 stores during the year: six in the United States, three in Spain and three in Portugal, three in France, three in the United Kingdom, two in Italy, one in Poland, one in the Czech Republic and one in Romania. As of September 13th, 2025, the company operated 473 stores in 17 markets. In addition, the company remodeled another 34 stores.

“Although overall sales for the year were weak, we achieved growth in the second half of the year,“ the company says. It also highlights the 24% increase in traffic to its website this year, with particular emphasis on the United Kingdom and the United States. Primark expects the new openings to contribute between 4% and 5% to its annual sales growth. Following the signing of its franchise agreement with Alshaya Group in the Gulf markets and the opening of its store in Kuwait in October, the company plans three new openings in Dubai early next year.

The company claims to have reduced its scope three greenhouse gas emissions, which account for the majority of its carbon footprint, by 3% compared to 3024, and by 4% compared to 2019. Primark reaffirms its goal to manufacture 100% of its garments from recycled, or more sustainable, materials by 2030. In 2025, 74% of its garments contained these types of materials or sourced.

Primark, a solo venture?

The British multinational Associated British Foods is considering separating the Irish low-cost fashion company from its other businesses, which range from supermarkets to sugar cane plantations.

According to British media, the company is consulting the decision to separate Primark from the rest of its businesses with the main shareholder of AB Foods, Wittington Investments, which has committed itself, on the other hand, to keep the majority shareholding in both businesses.

The company argues that, while Primark has become a major player in recent years, the food business has not been as strong. The aim would be to maximize the value of both in the long term. At the moment, management is assessing whether a spin-off would be the best option for the next few years.