Associated British Foods sees shares fall over 8% as Primark posts expected 3% like-for-like sales drop ahead of planned demerger

Associated British Foods (ABF), the FTSE 100 consumer goods group controlled by the Weston family, has reported that its Primark fashion retail division is expected to suffer a 3% like-for-like sales decline in the final quarter of its financial year, pulling full-year sales down by approximately 2.6%. The update sent ABF shares down more than 8% to 1,846p in early trading on 10 September 2026. ABF attributed the shortfall to a combination of heatwave disruption across Europe and a "challenging consumer environment in most markets". UK like-for-like sales are forecast to grow a modest 0.6% in the quarter, but continental European sales are expected to fall 4.7%, prompting the group to increase marketing and advertising investment in those markets. Separately, Primark is preparing to launch home delivery in Great Britain for the first time. The performance update arrives as ABF is working to ready Primark for a demerger expected next year, having opted earlier in 2026 to spin off the retailer as a standalone business. ABF said it is working "at pace" on improvements to the business ahead of the separation. The results sit against a difficult backdrop for European retail more broadly: Inditex, owner of the Zara fashion brand, reported currency-adjusted August sales up 9% and first-half gross profit growth of 8.3% to €11.6bn, suggesting that structurally stronger fast-fashion platforms are gaining ground while mid-market and discount retailers face sharper headwinds.