Primark is set to open a new 1.1 million sq ft distribution centre in Northamptonshire later this year.

The distribution centre will be opening in Islip and the company hopes that the warehouse, which is currently under construction will be completed by the summer, reports Logistics Manager.

Once the project has finished, Primark will move its operations from an existing site at Magna Park to the new site over several months.

This is one of two projects taking place over the year for Primark, as it also has plans to build a 56,000 sq m warehouse in Europe.

The new warehouse will be between Antwerp and Rotterdam to distribute products throughout its European network.

In a trading update, Primark's parent company Associated British Foods said that the retailer's sales were up seven per cent year-on-year.

Speaking on the uplift, the company said: "As expected, operating profit margin in the period was lower than last year, as a result of the stronger US dollar… However the margin reduction was lower than initially envisaged."

This was due to high performance rates from Primark's buying teams and a well-managed stock position.