theguardian.com
Primark May Invest More Abroad Due to UK Tax Hikes
Primark's parent company considers shifting investment abroad due to UK tax increases; challenges remain in UK sales and supply chain.
English
United Kingdom
UkInvestmentInternational TradeBudgetRetailSupply ChainTaxes
PrimarkAssociated British Foods (Abf)British Retail Consortium
George WestonRachel ReevesRita OraPaula Echevarría
- What are some of the supply chain challenges currently facing ABF?
- ABF is facing ongoing supply chain disruptions, including those related to trade routes in the Red Sea and political instability in Bangladesh. These challenges add to the complexities of the company's operations.
- What is Primark's pricing strategy in response to increased costs?
- Despite the challenges posed by the budget, Primark has no plans to raise prices this year. However, ABF's investment decisions may shift towards international markets due to the increased tax burden on UK businesses.
- How is the recent UK budget affecting Primark's investment strategy?
- Primark's parent company, ABF, is considering increased investment outside the UK due to the tax increases announced in the recent budget. The CEO, George Weston, highlighted that the high street will bear the brunt of these tax rises, impacting investment decisions.
- What specific tax increase is impacting Associated British Foods (ABF)?
- The UK's recent budget included tax increases, notably a rise in national insurance contributions for employers. This will significantly increase ABF's costs by tens of millions, according to Weston.
- How did Primark's UK sales perform in the last year, and what are the expectations for the Christmas season?
- Primark's UK sales grew by only 1% in the past year, impacted by unfavorable weather. However, collaborative ranges proved popular, and the company expects that wage growth and budget measures will support consumer spending during Christmas.