Sales smash records atPrimarkAs shoppers defy the economic gloom

Primark toasted record Christmas sales as it declared the cost of living crunch has had a less dramatic impact on demand for new clothes than feared.

In an upbeat trading statement, the budget chain said revenues hit 3.15billion in the 16 weeks to January 7 up 15 per cent on the same period last year.

Sales in the week leading up to Christmas Day hit a record high as cheap prices drove shoppers into its stores.

John Bason, finance director at Primark owner Associated British Foods, said that despite nervousness about demand this winter, a real decline in spending just didnt happen.

He added: Im not remotely saying some people arent finding it very difficult, were all being squeezed but it hasnt been as dramatic as we thought.

The update cemented Primark as one of the Christmas winners on the High Street alongside rivals such as Marks & Spencer and Next. Online rivals Boohoo and Asos struggled, however, as shoppers flocked back to the High Street.

Richard Hunter, head of markets at Interactive Investor, said: Primark is back with a bang given changing shopping habits.