PRIMARK, the discount fashion chain, is preparing for an assault on its rivals on the high street with plans to boost its Littlewoods-triggered expansion by £125 million to £500 million.

Primark, fresh from reporting forecast-beating sales growth of 12 per cent, said that it would keep around ten more of the recently acquired Littlewoods stores than it had planned and thereby increase its retail store floorspace by 1.15 million sq ft to more than 3.6 million sq ft.

Associated British Foods (ABF), the owner of Primark, originally had planned to retain about 30 of the 120 Littlewoods stores and to sell the rest to rivals.

However, John Bason, ABF’s finance director, said yesterday that Primark had decided to retain more stores after an evaluation of the Littlewoods portfolio had increased expectations that a conversion to the Primark format would be successful.

Primark’s decision to expand its high street presence will shock Bhs and Marks & Spencer, which have failed to match the discount chain’s strong sales growth.

Mr Bason said that in six months to September 17, Primark’s like-for-like sales were up 12 per cent, compared to first-half growth of 6 per cent. Primark’s full-year sales growth was 9 per cent, above analyst forecasts of about 6 per cent.

He said: “It’s more of the same in as much as the guys (at Primark) have kept true to the format that they have had for years — better and better quality clothing at these absolute rock bottom prices. We do do (fashion) trends, but there’s a consumer trend which is growth of discount clothing in the UK. And Primark is very actively following that trend.”

Primark has stormed into the British clothing market over the past few years, putting increasing pressure on other retailers.

With fellow value retailers such as New Look, Peacocks and Asda’s George range, Primark has grabbed market share from more expensive and less fashionable rivals such as Marks & Spencer and Bhs.

In the past five years, Primark has more than doubled its share of the clothing market by value to an estimated 2.7 per cent this year, according to Verdict, the market research firm. That figure does not include the converted Littlewoods stores, which are likely to increase its recent lead over Matalan, New Look and Bhs.

Primark is now the UK’s fourth-largest clothing retailer by value, albeit some way behind Marks & Spencer, the market leader, which holds 9.8 per cent, according to Verdict.

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