Primark has reported higher revenues on the back of new store openings, as UK like-for-like sales dipped marginally lower.

The high street fashion chain's growth helped drive revenues up at owner Associated British Foods (ABF), which saw group revenues rise 4% over the 16-week period to January 4.

Primark saw its UK sales grow by 4% as it benefited from new stores and expansions, while sales across the retailer were up 3%.

The company hailed "good trading" over November and December, despite highlighting a "marginal decline" in like-for-like sales.

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Primark said it heavily benefited from three store openings during the period, as well as site expansions.

It said it expects to open 18 new stores during the financial year as it continues its expansion programme.

ABF said Primark saw sales in its Eurozone business jump 5.1% higher on the back of "strong progress in France and Italy".

Elsewhere, ABF was bolstered by its strengthening sugar business, which saw revenues increase 5% after EU sugar prices remained higher than over the same period last year.

It said lower costs in sugar production also mean that there will be a material improvement in profits from the sugar arm, particularly in the second half.

Increased popularity of herbal teas in the UK and US helped to improve revenues at its Twinings division, while efficiencies in the tea supply chain also helped to improve profits.

ABF said grocery sales were level against the same period last year, although profit margins improved.

ABF said operating losses at its troubled Allied Bakeries business, which makes Kingsmill bread, were reduced after "progress from cost reduction" more than offset lower sales.

Simply Be and Jacamo owner N Brown has slashed its profit forecasts for the year, blaming lower credit revenues and the promotion-driven retail market.

The retailer said it now expects to post pre-tax profits of between £70 million and £72 million for the year, down from its previous estimate of £78 million to £84.1 million.

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The company said total revenues decreased by 5% for the 18 weeks to January 4 as it was impacted by a 4.6% decline in its financial services arm.

Steve Johnson, chief executive officer of N Brown, said: "This has been an encouraging period of peak trading for the business in a highly promotional market, as we delivered digital revenue growth across both womenswear and menswear, with particularly strong digital growth from Simply Be and Ambrose Wilson as customers responded well to our ranges.

"Financial services revenue was down, reflective of our strategic approach to the retail business and continued tightening of our lending criteria.

"Our expectations remain that the retail market will continue to be challenging and promotional, but we are focused on our clear strategy of delivering profitable digital growth."

Halfords managed to woo customers to its bike offering over Christmas, as it saw cycle sales jump during the festive season.

The company revealed cycling sales jumped 5.9% on a like-for-like basis in the 14 weeks to January 3 - including sales of ebikes and escooters doubling.

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As a result of the demand for electric bikes and scooters, the company has trained 700 staff across the range, with another 10% to 15% to be added later in the year.

Executives put down the boost in cycle sales to better store layouts "with a more innovative and differentiated range that has created a better shopping experience for our customers during the peak holiday period".

Car part sales continued to suffer, with sales in its motoring division dropping 2.7% on a like-for-like basis.

The company explained that the market remains challenging "with low levels of consumer confidence continuing to impact big-ticket discretionary categories such as technology and workshop".

It added: "There has been no incremental sales benefit from the weather, with a mild winter so far, similar to last year.
"Despite this, we still managed to grow our 3Bs business (bulbs, blades and batteries), demonstrating the improvements we have made to our customer offer."

Online did help improve sales, with a jump of 27% and around 80% of all orders collected in stores - which reduces delivery costs for the business.

Overall, revenues across the group were up 4.6%, or 1.3% on a like-for-like basis.