Primark - due to open a new store in Gloucester before Christmas - has seen its sales nationally fall by 12% from pre-Covid levels.

But the chairman of the parent company said the strength of Primark's sales after the reopening of its stores in the spring demonstrated the 'relevance and appeal' of its 'value-for-money offering'.

The discount fashion retailer is due to welcome its first customers to the former BHS on Eastgate Street on 8th December.

The new Primark will be a larger store than the existing branch and is expected to stock a bigger range of clothing and homewares.

The annual results from the parent company Associated British Foods show that nationally the retailer has been hit by higher costs and supply chain issues.

Strong sales in the food division offset the dip in Primark's business. Nevertheless, Primark's adjusted operating profit was up 15% to £415m on last year, excluding the repayment of job retention scheme money.

Michael McLintock, group chairman, said: "Sales and profit for the Group this financial year were again below pre-COVID levels and this was driven by the results for Primark, where a third of its available trading days were lost as a result of store closures due to the public health measures taken in our major markets."

Provided there is no reintroduction of significant restrictions, the company estimates that Primark sales will increase by at least the estimated £2bn lost due to store closures last financial year.

McLintock said: "Primark is not immune to the challenges of supply chain, raw material cost and labour rate inflation."

He added: "We are seeing significant cost increases in energy, logistics and commodities in addition to the impact of widely reported port congestion and road freight limitations. Our businesses are working to offset the impact of these through cost savings.

"Where necessary, our food businesses will also implement price increases. With the recovery in Primark's profitability, we expect the Group's effective tax rate to fall next year to a level closer to pre-COVID rates."