Home Shares AB Foods shares jump on Primark reopenings

AB Foods shares jump on Primark reopenings

AB Foods shares jump on Primark reopenings

Shares in Primark-owner, AB Foods (LON:ABF), jumped on Monday following the announcement of further store reopenings and the impact of on cashflow of the those stores that have already reopened.

The company said closing Primark stores carried cost AB Foods £650m in cash per month but expected most stores to be reopened by the end of June.

The AB Foods share price rose over 7% following the news.

AB Foods outline their plan to continue to reopen stores and the measures they would employ to ensure a strong level of social distancing.

“As European governments have begun to ease restrictions on clothing retailing we have been able to re-open stores. Safety has been our highest priority in our detailed preparations to welcome our customers and employees back to stores. We are following government safety advice in all markets,” AB Foods said in their release.

“Importantly, we will apply the valuable experience gained from more than 100 stores which are already open as we open the remainder of our estate, including stores across the UK. Social distancing protocols, hand sanitiser stations, perspex screens at tills and additional cleaning of high frequency touch points in the store are among the measures we are implementing. Personal protection, including masks and gloves, are being made available to all employees. These measures are designed to safeguard the health and wellbeing of everyone in store and to instil confidence in the store environment. Feedback from customers and employees in those markets where the stores are open has been positive.”

AB Foods was part of a wave of companies unveiling plans to open stores across Europe on Monday making th retail sector one of the best performers in European equities.

AB Foods shares are still down over 25% in 2020 having seen lows beneath 1,600p.