The frontage of a branch of discount clothing retailer Primark.

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Primark owner AB Foods’ shares slump because of sugar and sentiment

As its sugar business fails, fast-fashion retailer Primark is hoping a stateside push can unlock more sweet growth.

5/1/25 6:40AM

The owner of bargain fashion retailer Primark has had a rough week.

But for once, the value clothing chain — which has seen its fair share of controversy in recent years, from unethical labor practices and sustainability concerns to “errors of judgement” leading to its CEO resigning last month — wasn’t the primary source of parent company Associated British Foods’ pain.

Sweet, sours

AB Foods shares slumped more than 9% on Tuesday after reporting interim results for the first half of 2025. The group warned that its sugar business — yes, Primark’s parent company is deep in the sugar game... and the bread game... and the enzyme game... and the animal feed game — will struggle to get back to profitability anytime soon, and that its commercial viability is being “undermined.”

Indeed, AB Foods now expects to report a loss of up to £40 million in its sugar segment for FY25, owing to restrictions put on its sugar-derived biofuel business, Vivergo, as well as declining market conditions for comestible sugar in Europe. But while the sweet sector weighed heavily on the company’s outlook, the forecast for its retail division (which is just Primark), wasn’t too bright either.

For the past decade, Primark has been the primary growth driver for AB Foods. Retail revenues at the company increased by 57% in the five years to 2019 (as sugar contracted by 40%) before the budget Irish retailer had a particularly strong postpandemic rebound. Since 2021, Primark’s sales have boomed almost 70% to a whopping £9.4 billion last year.

However, the latest interim results showed that the company’s meal ticket posted a 4% decline in comparable sales in the UK and Ireland in the 24 weeks to March 1.

The company pointed to weakening consumer confidence, job cuts, and a “lack of seasonal purchasing” due to “mild weather” (companies love blaming the weather for their woes, but rarely credit it for their wins) as reasons why Primark has lost market share in the UK.

To get growth back on track, the group is betting on its stateside push. Though tariffs affecting its clothes production have complicated its supply chain somewhat, Primark is planning to expand its 29 US stores to 60 by the end of 2026, in the hopes that the brand’s low-priced offerings will attract de minimis-affected customers away from Shein and Temu.

Besides its international expansion, Primark still mentioned some “early signs of improvement” in the brand’s UK sales as the weather begins to warm up again — which often means Brits panic-buying cheap shorts, flip flops, and swimwear at a moment’s notice.

Nia Warfield7h

Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy.

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

Hyunsoo Rim8h

Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: “smile, make eye contact, and greet or wave” when a shopper comes within 10 feet — and if they get closer, within four feet, “ask whether they need help or how their day is going,” according to a new Bloomberg report.

Dubbed the “10-4 program” internally, the rule mirrors rival Walmart’s own 10-foot policy, formalizing behavior Target had previously only encouraged.

Target Mandates Worker Smiles, Friendliness to Boost Sales

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Monster surges on energy drink buzz, while Celsius sinks on distribution concerns

Shares of Monster Beverage climbed 5% after the bell on Thursday, and held most of those gains into early trading on Friday, following strong Q3 results.

The energy drink giant topped market expectations, with quarterly sales up 17% year over year to $2.2 billion and adjusted net profits growing 41% to $524.5 million — 11% ahead of Wall Street’s estimates. In the report, Monster highlighted its zero-sugar line and new product launches, with a stack of novel flavors already released this year, as bright spots.

During a call with analysts, Chief Executive Hilton Schlosberg said that the global energy drink category “remains healthy with robust growth,” The Wall Street Journal reported, adding that demand for more affordable caffeinated drinks is rising as coffee has become “really expensive.”

Meanwhile, rival beverage business Celsius saw shares fall as much as 23% on its Q3 results yesterday — despite beating expectations, with revenue jumping 173% — largely due to concerns about a change in the company’s distribution channel, as its newly acquired Alani Nu brand joins the PepsiCo distribution network.

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