Primark’s Value Offering Finds Favor With Consumers in Early Fiscal 2023; Shares Still Attractive

Associated British Foods, or ABF's, trading update for the 16 weeks to Jan. 7 (first quarter of fiscal 2023) highlighted to us that management's prior-year decision to limit further price increases at Primark—which we previously noted as positive for the chain's market share development over the longer term—has started bearing fruit. ABF reported a particularly strong Christmas period for its retail arm, which outperformed the wider market as Primark's value offering resonated with consumers amidst rising pressure on disposable income.