ABF Considers Primark Split as UK Sales Fall 3.1% With Profit Down 13%

Associated British Foods (ABF), owner of Primark and several food brands, reported a 13% decline in full-year profits to £1.4 billion amid a challenging retail environment and weak consumer confidence. Primark's UK and Ireland like-for-like sales dropped 3.1%, attributed to cautious consumer spending and rising inflation, although sales improved in the second half of the year due to stronger womenswear and digital engagement. ABF is exploring a potential separation of Primark from its food business, aiming to maximize long-term value, though no final decision has been made. The company anticipates a subdued retail market continuing into 2026, with ongoing pressure from online competitors and cost inflation impacting consumer behavior. Despite these challenges, Primark's international expansion, particularly in the US and Europe, showed growth, and ABF plans to focus on pricing strategies and store rollouts to drive future sales. Chief Executive George Weston expressed cautious optimism for 2026, emphasizing Primark's strong brand and growth opportunities alongside the value of ABF's food portfolio.