Primark sales up 13% ahead of US market entry

Sales at Irish-founded discount-clothing retailer Primark were up 13%, year-on-year, for the first nine months of its financial year.

The constant currency figure (the weak euro against sterling meant sales were 9% up, at exchange rates) drove a 2% increase in group revenues for parent Associated British Foods in the first nine months up to the end of June.

Dublin-based Primark’s performance was aided by strong regional performances in the UK, Spain, Portugal, and Ireland, where it trades as Penneys.

The latest figures for Primark come just two months before it opens its first US store. The retailer has signed up for eight store leases in the north-east of the US, with openings in New York, New Jersey, and Pennsylvania, before the end of 2015. The first outlet will open in Boston in early September.

Davy Stockbrokers has suggested that Primark could have a market of 20m customers.

“The challenges for Primark, to launch in such a competitive market, are not understated,” said Davy’s Jack Gorman. “Brand and price-positioning will be crucial, as will good execution on product and in-store environment.

“A novel offering and a good understanding of the retail and pricing dynamic... can provide the foundation for US success.”