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Primark to open its first US stores Primark to open its first US stores
(about 1 hour later)
Clothing retailer Primark is to open its first US stores, beginning with a 70,000 sq-ft shop in Boston in Massachusetts.Clothing retailer Primark is to open its first US stores, beginning with a 70,000 sq-ft shop in Boston in Massachusetts.
Primark plans to open the store towards the end of 2015.Primark plans to open the store towards the end of 2015.
Negotiations are under way to open further shops in the north-east of the US by the middle of 2016.Negotiations are under way to open further shops in the north-east of the US by the middle of 2016.
Primark owner Associated British Foods said half-year operating profits at its retail operations, which include Primark, rose 26% to £298m.Primark owner Associated British Foods said half-year operating profits at its retail operations, which include Primark, rose 26% to £298m.
"After extensive research, it has been decided to take the [Primark] concept to consumers in the USA," Associated British Foods said."After extensive research, it has been decided to take the [Primark] concept to consumers in the USA," Associated British Foods said.
The group, which also owns Penneys-branded stores in Ireland, said that operating profits for the half-year rose by £7m to £463m.The group, which also owns Penneys-branded stores in Ireland, said that operating profits for the half-year rose by £7m to £463m.
Group profits were largely driven by its retail and grocery arms, chairman Charles Sinclair said.
In the UK grocery group, growth by Ovaltine and Twinings was partly offset by lower sugar prices and sales volumes at Silver Spoon.
Associated British Foods shares were up 8% in early trading on Wednesday.
Bangladesh disaster payments
Primark is a major contributor to compensation for the victims and families of the Rana Plaza factory collapse in Bangladesh last year.
Out of a total of $12m (£7m) compensation, $7m was accounted for in last year's results, and $5m has been charged in the year to date.
Primark paid $2m in short-term compensation and has committed to long-term payments of $9m. A further $1m will be paid to the Rana Plaza Donors Trust Fund.
"We support the International Labour Organization in urging other retailers sourcing from Rana Plaza to donate to the Trust Fund so that it can pay out in full to the remaining victims," Mr Sinclair said.
At least 23 brands were produced at the garment factory.
More than 1,130 people died when the factory building near Bangladesh's capital, Dhaka, collapsed in April 2013.