Primark lacks fizz as it approaches its go-it-alone moment

Primark's latest results lack fizz, writes columnist Nils Pratley. The chain is heading toward life as a separate company, and its numbers are not exciting investors. Profit has fallen and growth has slowed. That matters more than usual because Primark is about to stand alone, without the sugar and food business that has supported it. A company that sells cheap clothes needs steady sales and thin costs. When both wobble, the spin-off story looks weaker than planned.

Primark's parent, Associated British Foods, said it would separate the chain into its own listed company. The plan was meant to let investors value Primark on its own. Primark grew for years by opening huge stores in city centres and selling clothes at very low prices. It has no home delivery, which keeps costs down. Now wages, rents and shipping cost more, and shoppers are careful with money. Rivals with online stores can reach customers Primark cannot.

A stand-alone Primark must pay for its own growth. That could change its prices, its store plans and the jobs it offers.