Primark sales defy retail gloom

Primark is continuing its European expansion

The owner of discount clothes shop Primark says the chain has continued to defy much of the retail gloom.

New stores, expansion and improved demand at existing shops pushed Primark sales up by 20% in the 40 weeks to 20 June, said its parent firm, AB Foods

This year Primark has opened its first outlets in Germany and Portugal, and also opened a branch in Barcelona.

AB Foods said total group sales - which include the Silver Spoon sugar business - were up by 19% in the period.

Progress at Primark was offset by tougher trading for the company's Allied Bakeries business - which makes Kingsmill bread.

Primark became known for its cheap clothing well before the economic downturn.

AB Foods said the clothing chain - which now has 190 stores - had seen "excellent" like-for-like sales growth "despite trading conditions in UK clothing retailing remaining difficult".