 40 Littlewoods stores will convert into Primark outlets in 2006/7 |
The owner of discount store chain Primark is to spend �500m on converting Littlewoods stores bought earlier this year to its retail format. Associated British Foods said spending on changing the 40 Littlewoods stores to trade as Primark outlets would be �125m higher than previously indicated.
The increased investment comes at a time when Primark is bucking the trend of growing gloom on the UK High Street.
Like-for-like sales at its 123 stores are forecast to rise 9% this year.
'Strong growth'
In a trading update, Associated British Foods said Primark had performed "very strongly" recently, and like-for-like sales growth was forecast to be about 12% for the second half of the year.
 | ASSOCIATED BRITISH FOODS(ABF) BRANDS Kingsmill Allinson bread Twinings Ovaltine Ryvita Silver Spoon Primark |
Primark, which sells low-cost clothes and homeware goods, has enjoyed strong growth over the past year, in contrast with the general slowdown in the retail sector.
ABF bought 120 Littlewoods stories earlier this year for �409m while also acquiring several stores from the collapsed department store chain Allders.
It plans to retain 40 Littlewoods outlets, more than originally thought, and sell on the other 80.
At a group level, Associated British Foods said trading over the past six months had been in line with expectations.
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