By Euro Weekly News Media • 09 September 2014 • 14:25
LOW-COST clothing store Primark are set to make a move into the lucrative US market, and are showing encouraging signs of success where so many of Britain’s high street names have fallen.
Primark is tipped to make a €250 million (£200 million) investment into establishing a presence in the market where brands such as Tesco, Sainsbury and Marks & Spencer have failed.
Their strategy includes opening a large store in Boston’s city centre, and if successful, stores in shopping centres in both New York and New Jersey states could soon follow as Primark attempts to get a piece of the US’s €250 billion (£200 billion) clothing market.
Speaking to The Guardian, John Bason, financial director at Associated British Foods (who own Primark), said: “We are looking at [retail] hot spots.
“One of the things about the US is they don’t know Primark so we are choosing locations where the people already are.”
The area of the States which Primark intends to focus on has a target population of 55 million, compared to the UK’s 65 million.
There have been British success stories, too. Both Topshop and Ted Baker have managed to grab a share of American retail pie.
By focusing on the Eastern seaboard, Primark hope to tap in to a ‘European style’ market.
Bason added: “The US is made up of a number of different markets.
“In this area a lot of the influences are more European than in the southern states where there starts to be a Latin American influence.”
By leasing their stores and warehouses, Primark hope to minimise the risk in a market that could pay top dividends if approached correctly.
An estimated €250 million investment will still be needed if the clothing store hopes to establish itself, but Primark’s international expansion up to now has been encouraging, helping the company to achieve the €6.25 billion (£5 billion) in sales achieved up to mid-September of this year.
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