Primark sees strong sales growth

Sales are still growing at Primark

Discount fashion retailer Primark has reported another increase in sales, as cash-strapped consumers continue to be attracted to its low prices.

Like-for-like sales - which strip out the impact of new stores - rose 5% in the six months to 28 February, said owner Associated British Foods (ABF).

ABF also reiterated that Primark had enjoyed strong Christmas sales.

However, ABF added that sales of its grocery brands were being hit by the wider fall in consumer spending.

As a result, the firm said its first-half profits would be "slightly lower" than last year.

However, it added that it was sticking to its full-year targets.

'Downgrading'

Within the company's grocery division, it said it had seen "a substantially lower profit" at its North American corn oil business ACH, which owns the Mazola brand.

Meanwhile, ABF said the rate of growth in sales of its Twinings premium teas had slowed, "particularly in the US and UK".

Sales of its Jordans breakfast cereals were also lower.

ABF said consumers seemed to be "downgrading".