Primark vows to offset cotton price hike
Primark has become the latest retailer to warn of rising commodity costs as it vowed to fight the soaring price of cotton and transporting its goods.
The value retailer said it would do "whatever it takes" to keep its prices down, including taking a cut in its profit margin, said George Weston, chief executive of Primark's parent company Associated British Foods.
"There's no question of us surrendering any price leadership," he said, warning that cotton prices have now nearly doubled.
Fashion retailer Next said the spike in cotton prices could cause clothes prices to rise by up to 8%.
Mr Weston's comments came as Primark released "outstanding" results, with sales up 18% to £2.7bn and profits up 35% to £341m.