Primark to target US retail market

Dublin-headquartered discount clothing retailer, Primark — which trades, here, as Penneys — plans to enter the US market, identifying Boston as its entry point.

The company, which is ultimately owned by UK conglomerate, Associated British Foods (ABF), has already signed a lease for a 70,000 sq ft space in Boston’s historic Burnham Building, which is currently being renovated.

Primark, which has operations in Ireland, Britain and mainland Europe, hopes to open its maiden US venture late next year and has plans to open further stores — negotiations are already under way — around the middle of 2016 elsewhere in the north-east region of the US.

Primark offered a strong contribution to ABF’s first half results for the six months to the beginning of March which were issued yesterday.

ABF reported an annualised drop of 2% in revenue, to just over £6.2bn (€7.5bn), but adjusted pre-tax profits were up by 4% at £468m and adjusted earnings per share rose by 10% to 45.8p.

Its retail division (Primark) saw a 26% year-on-year rise in operating profit to £298m, with revenue increasing from just over £1.9bn to just under £2.28bn.

ABF chairman Charles Sinclair said management expects continued growth in the retail business, helped by a strong pipeline of new store openings planned for the second half of the company’s financial year.

“As Primark builds upon the success achieved in the first half and with further store expansion planned for the remainder of the year, retail profits are expected to be well ahead,” he added.

The six months under review represented an active period of new store opening for Primark, with retail selling space across Europe increasing by 600,000sq ft.

Sixteen new stores were opened and another 500,000sq ft of space is set to open before the end of the current financial year.