As value fashion giant Primark sales and profits soar in its financial year ending September 15, Retail Week speaks to owner ABF’s finance director John Bason about the incredible performance.

Primark sales and operating profits soared 15% in its full year. What’s driven this performance?

There are two primary drivers; the increase of sales space both in the UK and in continental Europe. We’ve added 13% more space this year. But also we’re getting growth at the top end of our peer growth. Our like-for-likes were up 3% this year. It’s a combination of the two which has put us in a strong position.

Are shoppers looking for value right now?

I don’t think they are looking for it just right now. The trend has been growing for the past 20 years, particularly in the past 10 years. It’s a change of behaviour that’s here to stay.

How excited are you about your German expansion?

We’re excited. We’ve got a long way to go there – at eight stores it’s a tenth of the size of the UK, in a country which is much bigger.

Is the German expansion Primark’s most exciting opportunity?

It is very exciting but what’s getting us most exciting is that Primark is performing well in all the countries we’ve gone in to. Spain, the Netherlands, Belgium, not just Germany. The breadth of the opportunity is very special.

Is the value sector as well defined in those markets as in the UK, or is Primark’s low prices a new phenomenon in those countries?

Not only do we have the best prices on the high street, we also bring fashionability along with a great store environment. Germany has many discounters but it’s the fashionability and store environment that sets us apart.

How has your new Tottenham Court Road flagship performed since opening in September?

Oxford Street east has beaten expectations and remarkably there’s hardly been any effect on the Oxford Street west store by the opening.

Would you open any further West End flagships then?

For the moment, the two on Oxford Street is where we are at. The key thing is across the UK we’re increasing the size of our stores in large city centres. In Newcastle we’re extending from 40,000 sq ft to 115,000 sq ft and will have the same design as Tottenham Court Road. We’ve got major works in Manchester to extend that one and our Dublin store is expanding.

How do you think Christmas trading will be this year?

It’s difficult to say. All I can say is that autumn winter ranges are selling really well.

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