Penneys plans store and warehouse expansion
The new Irish store will be located at the Square Town Centre in Tallaght and will open next year and create 300 jobs. File picture
Primark, which trades here as Penneys, will boost its Irish store numbers as part of a global expansion drive aimed at boosting sales following the severe hit it took from having to close shops for vast swathes of Covid lockdown restrictions in key markets like Ireland and the UK.
Primark – which is ultimately owned by UK food and retail conglomerate Associated British Foods (ABF) – has also lodged plans with Kildare County Council for a €118m distribution centre in Newbridge, which it claims will deliver 482 full-time and temporary jobs.
The estimated capital spend of €118m on the project includes €43m construction costs for the base build by applicant Barola Capital, which is Primark’s property investment arm.
An additional €75m is to be spent by Primark on the internal fit-out and equipment for the semi-automated centre. One of the largest clothing retailers in Europe, Primark operates 36 Penneys stores in Ireland.
Architects for the scheme, TODD Architects – which designed the Titanic Centre in Belfast – said the uniqueness of the internal specifications “would render the unit one of the most leading-edge distribution centres in Europe”.
The project comprises a distribution warehouse facility of 64,550sq m and the amount of floor space in office accommodation is almost as large at 62,925sq m.
The proposed distribution centre – located 1.5km east of Newbridge town and 1.9km west of Junction 11 on the M7 motorway – is to operate 24 hours a day seven days a week. The site – which will have capacity for 110 lorry parking spaces – is bound by the Newbridge South Orbital Relief Road.
The planning application said Primark’s existing distribution centre, located 2km from the proposed development site, uses a logistics system that is “outdated and inefficient”.
In a full-year trading update, Primark said Covid restrictions have held back its progress in developing its pipeline of new stores.
It said it was having difficulty accessing and evaluating potential sites and negotiating with potential landlords.
However, it is still planning 500,000sq ft of additional selling space across its global reach over the next financial year.
New stores will open in Ireland, Italy, Spain, the US and the Czech Republic, it said.
The new Irish store will be located at the Square Town Centre in Tallaght and will open next year and create 300 jobs.
Primark also said it expected to see an “acceleration in new store openings” in future years.
ABF said it expected Primark operating profits – for the 12 months to September – to be ahead of last year. However, while like-for-like sales in the third quarter were 3% ahead of 2019 levels, a 17% drop in the fourth quarter was likely, the group said.
While the discount clothing retailer is also planning a digital overhaul and updated customer-facing website, it still has no intention of selling product online.
Primark's profits tumbled 62% last year due to lockdowns, with its first-half profit tumbling 90% in its most recent financial year.
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