Associated British Foods Plc is extending Primark’s click and collect trial across London later this year. The move is in efforts to build an online business for the in-demand budget fashion brand.

Primark will allow customers to buy kidswear and nursery items online and collect from 32 London stores this summer. The move comes as the retailer’s sales rose 19% in the first half with cash-strapped consumers buying £8 ($10) mini dresses and £20 jackets.

Strong sales at Primark are offsetting some of the steep cost inflation for garments and shipping, although the group said higher wage costs and technology investments mean the retailer’s margin in the second half will be largely the same as in the first. It expects an 8.3% margin for the retailer for the full year.

AB Foods, a conglomerate which owns a range of businesses from grocery to agriculture, said full-year profit in its sugar business is likely to decline as a result of much lower production in the U.K. However, overall full-year profit for the group is still expected to be in line with last year.

AB Foods shares have risen 27% over the past year.

The retailer started a click-and-collect trial for its website late last year in the northwest of England, Yorkshire and north Wales. It was the first time that customers could buy from the company online. The retailer struggled during Covid lockdowns because stores were forced to close for months and the business had no e-commerce site to fall back on.

Primark to expand in southern US

Primark is growing its footprint in the southern U.S. with a new warehouse. The retailer said during its earnings call with investors on April 24 that it intends open new stores in Texas. Primark’s Jacksonville, Florida-based distribution center will support stores located in the southern U.S.

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