Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 13 pages
Data source: Published sources
Topics:
Primark; Growth; UK; Retail; Fashion; US retail; Strategy; British brands; US failures; Challenges; Competition
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Abstract
The American failure of British stalwarts such as Tesco, Marks & Spencer and Sainsbury’s notwithstanding, Primark too decided to tread on the challenging $200 billion United States retail market. Founded in 1969, Primark, the Ireland based discount fashion retailer, had ambitious plans to invest $340 million in America. It planned its flagship store in Boston for a 2015 launch, spread over a sprawling 70,000 sq ft Primark, the UK’s largest fashion retailer by volume also boasted of an enviable record in Europe with over 250 stores. Further, it remained immune to the economic downturn and up until 2014 and had a turnover of about £4.3 billion a year. Considering its enviable performance over the years, many analysts held the opinion that Primark would succeed in the competitive US market with its unique business model of high fashion at low prices. On the other hand, there were also cynics who highlighted several problems in cracking the American retail sector, especially in terms of ever increasing competition, development of a good supply chain, adequate warehouses and sourcing from the right markets. Could Primark be the game-changer with its ’volume’ business in the American market or fall flat like many others who had an unceremonious exit from the US market?
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Abstract
The American failure of British stalwarts such as Tesco, Marks & Spencer and Sainsbury’s notwithstanding, Primark too decided to tread on the challenging $200 billion United States retail market. Founded in 1969, Primark, the Ireland based discount fashion retailer, had ambitious plans to invest $340 million in America. It planned its flagship store in Boston for a 2015 launch, spread over a sprawling 70,000 sq ft Primark, the UK’s largest fashion retailer by volume also boasted of an enviable record in Europe with over 250 stores. Further, it remained immune to the economic downturn and up until 2014 and had a turnover of about £4.3 billion a year. Considering its enviable performance over the years, many analysts held the opinion that Primark would succeed in the competitive US market with its unique business model of high fashion at low prices. On the other hand, there were also cynics who highlighted several problems in cracking the American retail sector, especially in terms of ever increasing competition, development of a good supply chain, adequate warehouses and sourcing from the right markets. Could Primark be the game-changer with its ’volume’ business in the American market or fall flat like many others who had an unceremonious exit from the US market?