Move over Target and Forever 21 you may have competition soon from the UK as Discount fashion chain Primark who made its mark in Europe by offering fast-changing fashion at rock-bottom prices is coming to the USA. The retailer formula continues to be its top-selling items like socks, tops and jeans and passing on the savings to shoppers.
Founded by Arthur Ryan in Dublin in 1969, Primark now turns over more than 4.3 billion pounds a year from 275 stores in nine countries, contributing half the profit of its parent .The chain sells over 300 million in socks a year and close to 200 million in T-shirts as well. They are bringing the same plan to break into the U.S. market this coming year. Its first city to be Boston with another 10 stores in the north east of the country by spring 2016
If Primark can overcome the challenges of entering the market in America, where it will compete against established discount rivals Target and Forever 21 as well as players like Gap, American Eagle and Aeropostale, it could be a game changer.
The company states the move to Boston and the east coast is wise because of similar climate and strong cultural links to Britain and Ireland. The retailer has had much success in the UK by focusing on a target market of young people, selling a limited range of sizes and keeping all overhead costs down, by customer toilets in its stores, the recycling of the cardboard cartons used to ship clothing into Primark's trademark brown paper bags and the recycling of 23 million coat hangers a year, doing little advertising and marketing, relying instead on word of mouth and digital and social media.
"The efficiency of the company at all levels should mean we always have the best price in the market," said Iberia head Jose Luis Martinez de Larramendi, who will lead Primark's push into the United States.