Primark boss points stark warning to Rachel Reeves over Price range

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Your assist makes all of the distinction. Learn extra Rachel Reeves has been urged to not give customers extra money worries in her November Price range, with Primark’s boss warning that clients are already taking the hit for robust enterprise situations.

George Weston is the chief govt of Related British Meals (ABF), a £14bn British-listed conglomerate agency, which, in addition to proudly owning Primark, is the dad or mum of meals companies reminiscent of Kingsmill and Twinings.

Talking after ABF’s newest monetary outcomes emerged, he warned the chancellor that, whereas meals inflation must be easing from this level onwards, companies have had no selection however to maintain passing on elevated prices to clients.

Greater employment prices because of nationwide insurance coverage hikes and minimal wage rises, rising enterprise charges in some industries and lingering uncertainty over tariffs have all performed a component in making the previous few months troublesome for UK companies – and in flip for British customers, who in the end should hold footing the invoice with rising costs.

“I hope shopper sentiment doesn’t take one other nice whack in November,” Mr Weston stated. “Something that reduces returns on funding or will increase the prices of using folks [could affect consumer sentiment].”

He additionally added that whereas Primark had tried to not transfer costs larger for the previous yr by utilizing know-how to offset elevated labour prices, the identical couldn’t be stated in different areas of the enterprise, with ABF “having to cross on a lot of this” to clients.

<img src="https://static.independent.co.uk/2024/11/05/10/5b6fe1930d03cb0d1713989aa0a8976cY29udGVudHNlYXJjaGFwaSwxNzMwODg3NjIx-2.64840990.jpg" srcset="https://static.independent.co.uk/2024/11/05/10/5b6fe1930d03cb0d1713989aa0a8976cY29udGVudHNlYXJjaGFwaSwxNzMwODg3NjIx-2.64840990.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2024/11/05/10/5b6fe1930d03cb0d1713989aa0a8976cY29udGVudHNlYXJjaGFwaSwxNzMwODg3NjIx-2.64840990.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Primark is trying to prevent price hikes by ‘using technology to offset increased labour costs’" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Primark is making an attempt to stop worth hikes by ‘utilizing know-how to offset elevated labour prices’ (PA Archive) Primark is named a lower-cost model, besides, the truth that gross sales have been flat this yr to date might be trigger for concern if used as a bellwether for the broader economic system. Opening two new shops within the UK helped Primark add whole gross sales, however by way of like-for-like throughout shops, the enterprise was down barely for the primary six months of the yr.

The federal government are prioritising development and acknowledging that extra must be carried out to stimulate financial development, however there was little sustained proof of that enjoying out to date this yr. Financial development information for July is due for launch on Friday.

Within the newest information launched by the Workplace for Nationwide Statistics (ONS), meals worth will increase had been virtually universally cited by the general public as the principle present monetary concern.

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“When requested wherein methods their price of residing had elevated over [August 2025], the vast majority of folks reported that the worth of their meals store had elevated (96 per cent), and over half reported will increase in fuel or electrical energy payments (55 per cent),” the ONS report learn.

Even with shopper issues over spending, although, cheaper shops won't essentially thrive, says one monetary skilled.

<img src="https://static.independent.co.uk/2025/09/11/8/50/PA-23918794.jpeg" srcset="https://static.independent.co.uk/2025/09/11/8/50/PA-23918794.jpeg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/09/11/8/50/PA-23918794.jpeg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="ABF chief George Weston says businesses have no choice but to pass on increased costs to customers" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

ABF chief George Weston says companies don't have any selection however to cross on elevated prices to clients (PA) “The concept that worth retailers will routinely thrive in a interval the place customers are watching their pennies now not stacks up. Low-cost costs don't imply items will fly off the shelf, simply as Primark has came upon,” stated Russ Mould, funding director at AJ Bell.

“Gross sales have been poor in elements of Europe amid a weaker shopper surroundings. Whereas there are inexperienced shoots within the UK, even its home territory isn’t firing on all cylinders.

“Within the present surroundings, all Primark can do is be sure that its shops are tidy, there may be good inventory availability, and pricing stays aggressive. It’s a case of sitting tight and ready for market situations to enhance.”

Shares in ABF fell greater than 12 per cent on information of the corporate’s newest monetary report, earlier than barely rebounding 2 per cent on Thursday.