Primark tests the water for its discount fashions in US
DISCOUNT clothing retailer Primark is poised to take on the American market – aiming to replicate the success of European giants such as Zara and H&M.
The retailer will open its first US store on Thursday in a 70,000 sq ft location in Boston. A further seven new stores are earmarked for cities across the country.
Primark, which is a subsidiary of the FTSE 100 group Associated British Foods, will use a distribution centre in Pennsylvania.
The US market has traditionally proved to be an impossible dream for many UK retailers with giants such as Tesco, Marks & Spencer and Sainsbury’s all withdrawing from the country after struggling with competition or facing troubles at home.
Mainland European retailers such as Sweden’s H&M and Spain’s Zara have been far more successful as have a number of smaller UK fashion retailers such as Ted Baker and Topshop.
Primark’s expansion into the US comes amid fresh evidence of tough times for many British retailers.
Research published last week from accountants BDO showed total retail sales in Britain falling by more than 4 per cent in August compared with the same month last year.
Investors will get a fresh snapshot of the retail sector next week with official updates due from a range of store groups including Argos-owner Home Retail Group, Dixons Carphone, Next and supermarket group Morrisons.
Analysts expect Morrisons to report a fresh fall in sales and profits. However, shares in the group rose last week amid speculation that it could become a takeover target for South African retail tycoon Christo Wiese, who has already bought up New Look and launched his own new fashion business in Britain.
Wiese’s potential interest in Morrisons was first reported by The Mail on Sunday late last year.