CLOTHING RETAILER Primark, which trades as Penneys in the Republic, has reported a 20 per cent rise in sales for the 40-week period to June 20th.

Primark’s owner, Associated British Foods (ABF), said it had increased sales despite difficult trading conditions in the UK.

ABF does not separate the performance of its 37 Penneys outlets in the Republic from the Primark brand.

In the 16 weeks to June 20th, Primark sales were 21 per cent ahead of the same period in 2008. This marks an acceleration on the 18 per cent year-on-year growth it reported for the preceding six months as the company benefited from consumers becoming more cost conscious.

The company said the sales increase reflected an increase in retail space following the opening of new stores in Germany, Portugal and Barcelona.

ABF did not provide data on like-for-like sales growth for Primark – a measure that removes the impact of changes in retail space.

ABF finance director John Bason said Primark had benefited from “continued momentum towards value clothing” in the Republic and the UK. Good weather had also aided sales in these markets, he said.

Mr Bason said the German and Portuguese stores were a test of whether the format would work in those countries, but it was too early to say how well they were doing.

Overall, ABF’s sales growth for the 40 weeks to June 20th was 19 per cent. When currency fluctuations are stripped out, sales growth was 8 per cent.

The company has also confirmed it plans to close its Irish yeast factory in Dublin by the end of the year, with production being transferred to Hull, England.

ABF expects little change in adjusted earnings per share for the full year.