Primark at the lookout for the right fit for the U.S. market
British discount fashion retailer Primark keeps expanding its footprint across the Pond, with the opening of their ninth store in the U.S. around the corner. However, the affordable fashion chain has yet to find the ‘right fit’ for the North American market, highlight industry analysts.
Primark will be opening a large-format shop at Kings Plaza Shopping Centre in Brooklyn, New York, on May 16. This is the ninth Primark store in the country since it first set foot in the market in late 2015, armed with an ambitious internalisation plan and a 250 million pounds expansion budget.
The 57,900-sq.-ft. Brooklyn location will feature women’s, men’s and children’s clothing and accessories, along with home goods, beauty products and gifts and, according to the company, it will reflect Primark’s latest contemporary store design.
Primark to try out new supply chain with Florida’s store in 2019
Additionally, Primark will have another store in Florida – planned for 2019. The affordable fashion retailer’s Chief Executive George Weston, told Reuters that they expect the Florida store in Sawgrass Mills to provide the opportunity to trade in a different type of retail environment, in both mall format and geographic location, from its existing stores. “It’s a great opportunity to test that market in a mall which is actually the busiest tourist attraction in the whole state after Disney World,” he said, noting 45 million people visit every year.
Primark is “refining its model in the U.S.”
“We’re quietly encouraged by what we’re seeing so far,” said Weston in a call with analysts earlier this month. “We continue to learn ... but it’s still very early days.” The company’s CEO null as well that Primark is still “refining its model in the U.S.”
Alex Smith, analyst at Barclays, agrees: “The management went in with a footprint too large relative to the current brand awareness in the U.S.” Smith highlighted how Primark is now shrinking some of its U.S. locations.
Barclays recently upgraded ABF, as analysts at the bank believe that Primark can grow its green business in the US to the same size as its European division in the next five to ten years, reported the ‘Finacial Times’.
“Consistent price leadership, strong fashion credentials and breadth of range positions the group favourably to take share,” Barclays told clients. “US fast fashion remains underdeveloped while value is also making ground.”