By Gary Symons
TLL Editor in Chief
The expansion of the European clothing retailer Primark is creating new opportunities for North American companies in the licensing industry.
Primark is an international fashion retailer employing more than 70,000 team members in 16 countries in Europe and now in the US.
Founded in Ireland in 1969 under the Penneys brand, Primark corporate goal is to provide affordable choices in sustainable clothing for everyone. That includes quality styles for women, men and kids, as well as beauty products, homeware and accessories.
Primark has been a huge success in Europe and has more recently embarked on a global expansion program. Primark currently has more than 400 stores globally, and continues to expand in new and existing markets, with the goal of achieving 530 stores by the end of 2026, including the upcoming new market of Hungary.
The company announced in February the opening of a new distribution center in Jacksonville, Florida, which is key to the company’s expansion plans in the American market. The distribution center, which comprises over 550,000 square feet of warehouse space in North Jacksonville, will serve Primark’s expansion in the US with a focus on Southern states including Florida, Texas, and more.
In fact, that expansion has already begun, as Primark has announced their plans to open new retail outlets in four locations, including Potomac Mills, Woodbridge, Virginia; the Mall at Prince George’s, Hyattsville, Maryland; the CoolSprings Galleria, Franklin, Tennessee; and Katy Mills, in Katy, Texas.
These new stores will add more than 128,000 square feet of retail selling space to Primark’s US offerings. “These new stores will bring Primark’s signature combination of the latest fashion trends and essentials for the whole family, as well as homewares and beauty, at the affordable prices American shoppers are seeking out, to more communities and an entire new state with the addition of Tennessee,” the company says. “These new stores will be serviced by the Jacksonville DC (Distribution Centre) and Primark’s existing DC in Bethlehem, Pennsylvania.”
The expansion has been driven by strong retail sales for the company in pretty much every market in which it operates, partly driven by a number of successful licensing deals and fashion collaborations.
In 2023, for example, Primark expanded the premium essentials Edit offer across more stores and it sold well. It also continued its successful UK and European collaborations with Stacey Solomon, Kem Cetinay and Paula Echevarria, as well as launching its first truly international partnership with Rita Ora “whose first collection sales have surpassed expectations,” the company said.
Sales of licensed products grew significantly too, in particular over Christmas, including launches with Disney, Netflix, The Grinch, and US sports partners NFL and NBA. The summer Barbie collection with Mattel also proved “very successful.”
Revenue in Primark’s retail division has been very strong, rising 17% to just over £9 billion and in constant currency, revenue rose 15%. Operating profit was up 30% at £717 million, but on an adjusted basis operating profit actually fell 3% to £735 million.
Part of the rosy revenue picture is being driven by Primark’s expansion in the US market, the company says.
“We’ve seen growing demand for Primark stores across the US, particularly in our southern locations where we’ve even expanded our store footprint in our Sawgrass Mills store to meet customer demand,” said Kevin Tulip, President of Primark US. “The opening of this distribution center in Jacksonville comes at the perfect time for the brand and our customers as we set our sights on continued growth across the US, including in Florida, Texas, as well as our first store in Tennessee, which we announced today. We’re thrilled to continue to bring ‘Primania’ to new customers with our expansion.”
Since 2013, Primark has doubled its global warehouse capacity. This is Primark’s 2nd distribution center in the US, in addition to Bethlehem, PA. Primark is currently operating in 24 stores in the US, across nine states and has plans to reach 60 stores in the US by 2026.
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