PRIMARK has called on the Government to deliver “tangible” growth rather than “generic words” as waning confidence starts to strangle the economy.
The fashion retailer yesterday posted a 6 per cent slump in like-for-like UK and Ireland sales — its first drop since shops shut during the pandemic.
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Eoin Tonge, finance chief of owner Associated British Food, told The Sun: “There is a weakness in consumer confidence that we don’t see in other markets.”
He highlighted that customers were nervous about their own finances because of gloomy warnings that the Budget could impact jobs and hiring, particularly temporary workers, adding: “There is nervousness because those cut-backs will be impacting those on lower incomes.
“There has definitely been too much talking down but now there needs to be tangible talking up. It can’t be generic. We need messages about tangible growth and the route to get there.”
Overall Primark’s sales rose by 2 per cent, helped by its collaborations with Rita Ora and Christmas ranges.
However the UK, which accounts for 45 per cent of Primark’s sales, suffered in comparison with strong sales in Europe and the US.
Primark’s warnings came as Sainsbury’s yesterday announced plans to axe 3,000 jobs in the face of higher costs.
And a closely watched survey suggested Brits were bracing for “dark days ahead”.
The GfK consumer confidence index has registered steep falls in confidence in family finances and the wider economy.
It is affecting factories too — with them recording the fastest slump in orders and confidence since the pandemic, according to the CBI’s Distributive Trades Survey.
The despondency is a challenge for Chancellor Rachel Reeves, who has been accused of hurting the economy with gloomy warnings and then launching a business tax raid.
Lloyds boss Charlie Nunn said at the Davos World Economic Forum that there was “nervousness around the economy and negative sentiment”.
And Steve Hare, boss of FTSE 100 tech firm Sage, told The Sun: “When negativity dominates the headlines, it seeps into decision-making. Businesses hesitate to invest. People hold back from spending. Borrowing to grow feels risky. And that’s where we risk stalling progress — not because of economic fundamentals, but because of a lack of optimism.”
Mr Tonge also hit out at the plans to reform the business rates system by offsetting discounts with higher rates for bigger stores.
He said: “I don’t agree with the logic.
“It’s not good for the high street. Bigger stores typically bring footfall to smaller ones.”
Sales are whey off
HIGH whey prices and a rebrand of protein powders have weighed heavily on e-commerce group THG.
The firm posted a 12 per cent slump in sales to £579million in its nutrition arm, MyProtein.
However, its beauty division, which includes Cult Beauty and Glossybox, grew sales by 3.3 per cent to £1.1billion.
THG recently took its tech arm, Ingenuity, private after believing the market did not accurately value the business.
CMA tech check on phones
THE UK’s competition watchdog has launched a probe into Apple and Google smartphones, just days after the regulator’s chairman was ousted for an Amazon executive.
The Competition and Markets Authority said it would investigate how the makers of iPhone and Android mobiles run their software and services.
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The watchdog is testing whether the firms favour their own apps, internet browsers and operating systems at the expense of other developers.
Last week the CMA launched its first probe into Google’s dominance in web searches.
It comes after the Government forced out the CMA’s chairman, Marcus Bokkerink, and instead appointed former Amazon UK boss Doug Gurr.
The move was seen as deliberately more friendly to Big Tech.
Chancellor Rachel Reeves said Mr Bokkerink had been shown the door because he didn’t “share the mission” for economic growth.
Home buy fight
AFFORDING a home is still a stretch for most Brits despite wage growth marginally exceeding house price rises, says Nationwide.
A would-be first-time buyer on an average wage, and with a 20 per cent deposit, would see mortgage payments swallow 36 per cent of their take-home pay, higher than the historical average.
First-time buyer house prices are typically five times salary.
Nationwide said high rents left four in ten first-time buyers turning to friends or family for help with a deposit.
Bank back-track
HSBC is shutting down its payments app Zing just a year after launch.
It was designed to rival Wise and Revolut, letting customers hold cash in different currencies and spend money internationally.
The closure puts 400 jobs at risk.
Beauty revolting
SHARES in Revolution Beauty tumbled yesterday after a warning that its sales would fall by a quarter.
The make-up group, which has dealt with an accounting probe, the exit of its founders, and a legal settlement with its biggest ex-investor, still faces a “transformational” year.
The firm announced an overhaul of around three-quarters of its original ranges to create a “profitable foundation for future growth”.
But sales are still projected to fall by 25 per cent — which shrank shares by 22 per cent.