Primark is set for spectacular growth as it makes its American debut in September. The UK-based retailers could easily double sales and profits in just five years as it rolls out its first of its US stores in Boston.
But it is not just expanding in the US that will spur the successful fast fashion chain's growth. But it is not just expanding in the US that will spur the successful fast fashion chain's growth. Europe is an important market for the value retailer, which will see Primark open its first of three stores in Italy next summer.
Primark to open 8 further US stores
Primark has signed leases for eight more US stores, due to open later this autumn, in key malls across the Northeast of the country.
Librium analyst Robert Waldschmidt says Primark owner Associated British Foods (ABS) has taken a cautious approach to its US venture, with an investment of 200 million pounds and lease deals that permit the retailer to fail quickly and move on if the launch isn't a success.
But Waldschmidt - and many others in the analyst community - don't expect failure. He believes the thousands of students in Boston will help to spread the word about Primark's offer and this is something Primark too sees as a key factor in its Boston launch.
In a recent interview with WWD, Primark CEO Paul Marchant, said he's feeling confident. “The US, for a number of reasons, feels like a natural fit for our brand. Boston is a great first move for us.
While Primark currently has little brand awareness in the US, it is considered a challenge it will succeed quickly. Marchant stated: "We are number one in terms of units of clothing, footwear and accessories combined in a number of the markets in which we trade. We are number one in the UK, Ireland, Spain and Portugal.”
Primark currently operates in Austria, Belgium, France, Germany, Ireland, Portugal, Spain, the Netherlands, the United Kingdom and soon the United States. It was founded and headquartered in Dublin, Ireland in 1969.