Primark is to invest more than £100 million in its British shops this year, as it marks 50 years on the high street there. This includes more than £75 million of new investment in UK retail in 2024, building on plans it announced back in November 2022, according to a statement from the group.
Happy days :-) |
NWT's other subsidiary to Safetell, Grosvenor Technology (branded as GT Clocks in America), is reported to be assisting Primark's American expansion:-
deepvalue2015 20 Dec '23 - 09:37 0 0 0
"the biggest near term growth driver will come from the rollout of Primark stores in the US? 8 new stores this year and 60 by 2026, GT clocks etc should be added at each of these shops. ..."
Grosvenor Technology's 'USA website':-
"Your people. Their data. We help you manage both." |
From the website of Safetell, a subsidiary of AIM-listed Newmark Security (NWT):-
"Retail Crime in the UK – and How To Address It
01 February, 2024
Shop theft has reached record highs in the retail sector, with nearly half of retailers claiming that theft has increased dramatically in the past year. According to reports, organised crime syndicates target retailers, shoplifting or stealing high-value goods to resell elsewhere. This harrowing trend puts staff and customers at risk. ..." |
Agree the update was fine.Nice cheap buybacks |
Footfall maybe is down in general, but the recent update highlighted Primarks growth and improved margins. I'm certainly not going to lose any sleep over it. :-) |
And again today.
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Retail footfall continued to fall in January, industry data showed on Friday, as wet and windy weather put off potential bargain hunters.
According to the latest BRC-Sensormatic IQ footfall monitor, total UK footfall fell 2.8% in January, though that was a marginal improvement on December’s 5% decline.
Within that footfall on high streets decreased by 2.3%, by 1.8% in retail parks and by 5% in shopping centres.
January normally sees shoppers seek bargains in the sales. However, the British Retail Consortium said increasingly bad weather had kept people at home.
Sharecast.com |
Dreadful . Been a lot dumped today. |
Barclays downgrading NXT today may be hitting the retail sector. |
Most retail taking a beating lately.
Interest rate cuts being put back to the summer at the earliest . One 'expert' even saying having to wait until september.. |
Any reason ABF being marked down these past few days?
I guess the only upside will be when buybacks start again it will be a cheaper prices |
Primark criticised over rollout of lingerie range |
The Sunday Times: Shein is on track to be bigger than Zara after new figures indicated the controversial fast-fashion giant raked in UK clothing sales of more than £1.3bn last year. |
 Cheap ABF could beat 2024 expectations, says Liberum
Associated British Foods (ABF) is trading on an ‘inexpensive’ valuation given that the owner of Primark could beat 2024 consensus expectations, says Liberum.
Analyst Anubhav Malhotra retained his ‘buy’ recommendation and target price of £28 on the Citywire Elite Companies AA-rated stock, which gained 0.8% to £22.86 on Tuesday.
The group reported a ‘solid’ first-quarter 2024, with group sales up 5.4% year-on-year and Primark sales growth of 2.8% against a tough 11% comparative, while there was increased confidence in the delivery of more than 10% Primark adjusted operating margin in full-year 2024.
‘We continue to forecast that the group could beat market consensus expectations for full-year 2024 driven by stronger than expected profitability at both Primark and sugar,’ said Malhotra.
‘Earnings beat, significant and growing free cash generation, consistent cash returns to shareholders via buybacks and dividends, and an inexpensive valuation underpin our “buy” rating.’
citywire.com |
UBS raises Associated British Foods price target to 2,300 (2,200) pence - 'neutral
JPMorgan raises Associated British Foods price target to 2,000 (1,875) pence - 'neutral' |
Gains evaporating. |
THE EXPERT’S VIEW
AJ Bell investment director Russ Mould said there are ‘still challenges to overcome’ for Primark, with consumers still feeling the pinch from higher interest rates and proving more cautious with how they spend money.
‘The weaker demand equation is widely known and so success is being judged on the ability to sell clothes without resorting to heavy discounts and to take market share off rivals. Primark is doing everything it can to tick off these boxes.’
Mould continued: ‘Ongoing store expansion means Primark has more opportunities to earn money and it believes margin improvements give it some breathing space should disruption in the Red Sea lead to supply cost inflation. Given the fragile backdrop, parent company Associated British Foods should be sitting more comfortably than most other retailers.
‘A key thing that works in Associated British Foods’ favour is its conglomerate structure, with interests in grocery, ingredients, agriculture and sugar helping to provide some ballast to the retail arm. If one of the arms is lagging, there is support from the other businesses and it’s always been that way, hence why the company is quick to shoot down any suggestions it should demerge Primark amid the argument it could be worth a lot more as a standalone business.’
sharesmagazine.co.uk |
Strong update. |
Nothing wrong with that for a Tuesday morning !
"Sales in the US grew by 45% in the period driven by new store openings." Plenty of potential there then, particularly in the 4XL range :-) |
This coming Tuesday it will provide an update on trading for the first four months of its financial year to September.
"AB Foods is unlikely to discuss wider capital allocation issues until its first-half results in April," said analysts at AJ Bell.
The outlook for 2024 is likely to be a key focus for investors and analysts, with sales currently expected to rise 5% for 2024.
This time last year the first four months of fiscal year saw £6.7 billion sales, of which £3.55 billion was from food and the rest from Primark.
For the whole of 2024, AB Foods has already suggested that Primark will show a modest increase in like-for-like sales and a larger increase in stated sales, thanks to store openings and its online roll-out. The adjusted operating margin at the retailer is expected to exceed 10%, compared to the 8.2% earned in fiscal 2023.
Sugar is expected to deliver a substantial increase in profits, Agriculture will increase adjusted operating profit, Grocery to come in with broadly flat profits and Ingredients to show a modest decrease in sales and earnings.
"More strategically, watch out for an update on Primark’s store opening plans in Europe and America in fiscal 2024, as it targets 530 stores by 2026 from the current count of 432, and also on its online roll-out, as well as comments on input cost inflation and pricing across all of its operations," said AJ Bell.
proactiveinvestors.co.uk |
Bank of America raises Associated British Foods price target to 2,000 (1,750) pence - 'underperform' |
Bad US inflation numbers , interest rates higher for longer. |
Straight line down. Miserable day. |
Following MKS down after their update. Recession looming. |
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