Primark American debut could boost profits by 70 percent

Value retail is big business in the USA, and Primark's launch into the lucrative American market could potentially boost it's sales by 70 percent.

The figure, which assumes the retailer is successful following its launch in the US this autumn, was shared at a meeting organised by broker Shore Capital with investors and John Bason, finance director of Primark parent ABF.

Shore Capital analyst Darren Shirley told Retail Week said such a performance could take growth from “low double digits to close to 20 percent", in the medium term.

Shirley said he expects Primark to roll out 750,000 square meters of space per annum in the US if the retailer is well-received by consumers.

He said that management is “quite pleased" with the quality of the seven stores Primark has taken from Sears. “They’ve been able to go in there without having to take any dogs," he observed.

The relationship with Sears represents a significant opportunity for Primark if it gains traction in the US, he added.