Says consumers have a little more spending power
Primark trading improved after Sept. 5 update
Trading strong in Sept. and most of Oct.
UK govt tax changes to cost 39;tens of millions39; of pounds
LONDON, Nov 5 Reuters Budget clothing retailer Primark is expecting to trade well in the runup to Christmas, the boss of its parent said on Tuesday.
We think that Christmas is going to be good, George Weston, CEO of Associated British Foods, told Reuters in an interview after the group reported annual results.
He highlighted the strength of Primark39;s product ranges and noted there39;s a little bit more consumer spending power available to our shoppers.
Weston said Primark39;s trading had improved after AB Foods updated the market on Sept. 5.
In that statement, Primark had forecast likeforlike sales would be 0.5 lower in its second half to Sept. 14. However, the outcome turned out to be up 0.5, he said.
He said trading in September and most of October was very strong, followed by a couple of soft weeks as warmer weather put shoppers off buying coats and knitwear.
We39;ve never seen such a reaction to weather previously. Our shopper spends her money when she needs to, not in anticipation of needing something, said Weston.
In last week39;s budget, the new Labour government raised employers39; National Insurance, or social security, contributions by 1.2 percentage points to 15 from April, and also lowered the threshold for when firms start paying to 5,000 pounds…