Economy03:43 · 13m ago

Primark Expands Aggressively in US with $16 Dresses and Red Carpet Appeal

Globes
Translated & summarized from Globes by baba
The story · English

Primark, the Irish discount fashion retailer, is making significant strides in the US market, aiming to establish a strong presence with over 40 stores currently operating across states including Texas, Illinois, Florida, Tennessee, and New York. The brand’s flagship store in Manhattan, near the Empire State Building, gained notable attention in May when actress Sarah Jessica Parker, famed for her role as Carrie Bradshaw in "Sex and the City," attended its opening event. This move was designed to signal that affordable fashion, such as a $16 dress, can also be stylish enough for red carpet appearances.

Owned by AB Foods, a nearly century-old conglomerate, Primark has invested over $90 million in 2025 alone to expand its US footprint. Two new stores are set to open in July in Houston and Indianapolis, each spanning approximately 3,000 square meters. The company reported a 14% sales increase in the US since the start of the year, with a 16% rise in the third quarter, highlighting the success of its expansion strategy. However, performance in some US locations like Memphis and Nashville has been disappointing, and sales in Europe have declined by about 2%, attributed to a challenging consumer environment.

AB Foods announced in April a plan to split its food and fashion businesses by the end of 2027, making Primark an independent company to better focus on its respective markets. CEO George Weston expressed disappointment over slower-than-expected recovery in Europe and cited the Middle East conflict as a factor dampening consumer spending in April and May. Analysts also pointed to Primark’s lack of a full e-commerce platform as a competitive disadvantage, especially against Chinese fast-fashion brands like Shein and Temu, which offer strong online sales channels.

In Israel, although talks about bringing Primark to the country have been ongoing since January, with Elektra potentially involved in franchising, no physical stores have opened yet. Recently, a local shipping company launched a service allowing Israeli customers to order from Primark’s UK stores via Click & Collect and have items shipped to Israel, reflecting growing interest in the brand.

Primark’s strategy combines low prices with high visibility, leveraging celebrity endorsements and expanding its physical presence in the US, while facing challenges in Europe and adapting to the evolving retail landscape dominated by online shopping.

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