Business
Primark owner profit dips as UK sales fall amid inflation squeeze
Primark saw sales drop in the UK as people spent less at the budget retailer, its owner Associated British Foods (ABF) said.
In the year to September it saw a 3.1% fall in like-for-like sales compared with the year prior, which it said reflected weak consumer confidence.
The company said it expected the “subdued” retail market to impact Primark sales into 2026.
ABF said that it was exploring splitting off the fast-fashion retailer from its food business, where it owns brands like Twinings, Ovaltine and Ryvita.
The entire business saw profits fall by 13% to £1.4bn for the year.
Chief executive George Weston said though he was “confident” for 2026, it depended on the “consumer environment” which was was “particularly unpredictable at the moment”.
British shoppers have been tightening their belts amid rising prices on the UK high street, and turning to even cheaper competitors such as Shein and Temu.
Inflation, the rate at which prices rise, has held stubbornly at 3.8% for the year to September. Although inflation is down from highs seen in 2022-2023, it remains above the Bank of England’s target of 2%.
The Associated British Foods boss said in a call after the financial results that there was a “working assumption” in ABF that a separation of Primark “is where we would like to get to”, although no decision had been made.
Dan Coatsworth from AJ Bell said it was not clear what triggered a rethink by the board, which had previously pushed back against the idea of a break-up, but did say Primark could command a much higher share price as a standalone company separate from its food business, which AB Foods said was “less well-understood” by the market.
Mr Coatsworth said over the years many people have expressed a desire to only invest in Primark, rather than have its rapid growth “diluted” by non-retail interests.
He added that “the wheels are being greased for a corporate break-up”, especially as such demergers are “all the rage” at present, with Unilever, Kraft Heinz and Warner Bros Discovery among those currently in the process.
“The idea of ‘slimming to greatness’ is based on the principle that big companies might benefit from having a tighter focus rather than spinning three or four plates at the same time,” he added.
Laura Lambie from Rathbones added that ABF was a “disparate mixture of businesses with no real strategic rationale behind it”.
Primark, which has 475 stores in 18 countries, had reached the size where it requires extra focus to capitalise on its growth prospects, particularly overseas said analysts, with one saying Primark was the “jewel” in ABF’s crown.
But Primark’s challenges in the UK could worsen as Chancellor Rachel Reeves is widely expected to raise taxes in the Budget later this month.
That would come on top of cost rises seen since the last Budget, including more expensive staffing costs as a result of the rise in minimum wage.
People are feeling insecure about their jobs as businesses cut back on hiring, said Laura Lambie from Federated Hermes, and that was part of what was fuelling a “difficult environment” for retailers as profit margins shrunk.
The news comes as a series of casualties on the UK high street continue as the costs of maintaining bricks-and-mortar stores becomes too high amidst rising online competition and pressure on consumer spending.
Recent retail names that have had to close stores or enter administration include Bodycare, Claire’s, and Pizza Hut which said it will be slashing the number of restaurants it operates.
Last Updated:
Indian equities paused on Wednesday after the previous session’s sharp surge triggered by the India–US trade agreement
Stock Market Today.
Sensex Today: Indian equities paused on Wednesday after the previous session’s sharp surge triggered by the India–US trade agreement. The pact, which reduced US tariffs on Indian goods to 18 per cent from 50 per cent, had buoyed sentiment and removed a major overhang, but markets turned cautious as traders booked profits.
A decline in information technology stocks further weighed on the mood.
At the open, the BSE Sensex was around 83,430, down 309 points or 0.37 per cent, while the Nifty 50 stood at 25,663, lower by 65 points or 0.25 per cent.
Broader markets also traded in the red, with the Nifty MidCap index slipping 0.48 per cent and the Nifty SmallCap index easing 0.18 per cent.
The Nifty IT index tumbled more than 5.5 per cent, led by losses in Persistent Systems, LTIMindtree, Infosys, HCL Tech, Coforge, TCS, Mphasis and Tech Mahindra.
Global cues
US markets ended lower overnight as investors rotated out of technology stocks into sectors more closely tied to economic recovery. The Dow Jones slipped 0.34 per cent, the S&P 500 declined 0.84 per cent, and the Nasdaq fell 1.43 per cent at the close.
Asian markets were mixed in early trade on Wednesday amid the absence of strong triggers. China’s CSI 300 index dropped 0.29 per cent, Hong Kong’s Hang Seng edged down 0.05 per cent, and Japan’s Nikkei lost 0.61 per cent. In contrast, South Korea’s Kospi rose 0.54 per cent.
In commodities, spot gold gained over 1 per cent to $5,002 per ounce, while spot silver advanced 0.69 per cent to $85.70 per ounce.
On the macro front, investors await the release of S&P Global/HSBC composite and services PMI final data for January from both India and Japan.
February 04, 2026, 09:13 IST
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Business
Top stocks to buy today: Stock recommendations for February 4, 2026 – check list – The Times of India
Stock market recommendations: According to Mehul Kothari, DVP – Technical Research, Anand Rathi Shares and Stock Brokers, the top stocks to buy today (February 4, 2026) are Indian Oil Corporation, Tata Elxsi, and IFCI. Let’s take a look:IOC – Trendline Breakout with Indicator ConfirmationBuy: ₹165–₹163 | Stop Loss: ₹159 | Target: ₹172Indian Oil Corporation (IOC) has formed a strong base near its 100-DEMA, which has acted as a reliable dynamic support in recent sessions. The stock has also delivered a decisive trendline breakout, indicating a potential shift in short-term momentum.On the indicator front, a bullish MACD crossover is visible, signalling strengthening upside momentum. The Stochastic Oscillator has reversed higher near the 30 zone without entering deep oversold territory, suggesting improving price strength and underlying buying interest.The confluence of 100-DEMA support, trendline breakout, MACD bullish crossover and stochastic reversal points towards a constructive setup with scope for further upside if the breakout sustains.TATA ELXSI – Alligator Breakout with Bullish MomentumBuy: ₹5,500–₹5,400 | Stop Loss: ₹4,900 (closing basis) | Target: ₹6,275 & ₹6,550 (1–3 months)TATA ELXSI has closed decisively above the Williams Alligator indicator, confirming a fresh uptrend and improvement in overall price structure.Momentum indicators remain supportive, with DMI in bullish mode (+DI above −DI), indicating strengthening buying pressure and positive directional movement. Additionally, the MACD sustaining above the zero line reflects strong trend momentum and increases the probability of continued upside.This combination of Alligator breakout, bullish DMI structure and positive MACD trend suggests a trend-continuation setup with scope for further upside in the coming weeks.IFCI – Alligator Breakout & Retest ConfirmationBuy: ₹56–₹50 | Stop Loss: ₹46 (closing basis) | Target: ₹63.5 & ₹67 (1–3 months)IFCI has closed decisively above the Williams Alligator indicator and has successfully completed a retest of the breakout zone, confirming continuation of the emerging uptrend and strengthening bullish structure.The DMI has turned positive (+DI above −DI), indicating buyers are in control and directional momentum is favouring the upside. The MACD sustaining above the zero line further supports positive trend momentum and enhances the probability of further upside movement.The alignment of price breakout, retest confirmation and bullish indicators suggests a constructive medium-term setup with favourable risk-reward.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
Younger and entry-level workers are being squeezed the hardest by higher employment costs slowing the rate that firms are hiring, new analysis shows.
Some UK businesses have seen the cost of employing workers rise on the back of recent policy measures, including tax and minimum wage increases and reforms to employment rights, the National Institute of Economic and Social Research (Niesr) said in its latest economic outlook.
These factors have raised the marginal cost of hiring by around 7%, in real terms, for an entry level position, according to its findings.
Niesr warned that sectors most exposed to cost increases were experiencing a bigger impact, pointing to data showing a link between exposure to the national minimum wage and rising unemployment.
This includes typically lower-paid industries such as hotels, hospitality and food chains, which also have a greater concentration of younger and early-career workers.
Its analysis found that, rather than cutting existing jobs, many firms have chosen to slow the rate that they hire staff.
Therefore younger workers and those “at the margins of the labour market” are being disproportionately squeezed, the think tank said.
Official figures at the end of last year showed that the unemployment rate rose to its highest level since early 2021 over the three months to September.
The Office for National Statistics (ONS) said that young people especially were struggling in the tougher hiring climate, with an 85,000 increase in those unemployed aged between 18 to 24 in the three months to October – the biggest jump since November 2022.
The number of young people not in employment, education or training – so-called Neets – has been rising since 2021, and hit the highest level since 2014.
In its report, Niesr said it was “hard to escape the conclusion that the rising cost of labour has deterred full-time job creation, particularly for younger workers”.
Lord Frost, director general of the Institute of Economic Affairs, said the findings “laid bare the costs of the Government’s national insurance and minimum wage hikes, and Employment Rights Act: a spike in the cost of hiring entry-level workers, meaning fewer jobs and opportunities for young people”.
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