Sugar can’t sweeten AB Foods’ retail slowdown at Primark
AB Foods’ odd twin-engine model – selling cheap clothes on the one hand, and producing foods like sugar and tea on the other – is about to be put to the test. Sales are slowing at Primark, the fast-fashion chain that accounts for two-thirds of the UK group’s operating profit. The effect of a weaker pound, and a forecast of a 200 million pound UK pension deficit this year caused by bond-yield moves, add to a souring outlook.