International fashion retailer Primark has celebrated the grand opening of its 60th store in Spain, located in the city of Lorca.
This €6m ($6.6m) investment highlights Primark's commitment to its Spanish expansion, marked by a substantial €100m capital injection into new stores and refurbishments.
Primark's foray into the Spanish market began in 2006 with the inauguration of its first store in Madrid's Plenilunio shopping centre. The low-cost fashion retailer has since established its presence across all autonomous communities in Spain, including the autonomous city of Melilla.
Strategic investments
In 2022, Primark unveiled its plan to invest €100m in Spain, allocating €80m for eight new stores and one store extension, alongside a €20m commitment for store refurbishments.
Lorca joins the ranks of new openings across the country, following launches in Toledo Luz del Tajo, Open Mall Lanzarote, and Melilla, as well as the recent Diagonal Mar store extension.
Four more stores are set to open in 2024.
Carlos Inacio, general director of Primark in Spain, expressed pride in the 60th store opening and said, in a statement: “This very exciting milestone reflects Primark’s dedication to growth in the Spanish market, increasing our number of stores, reaching more customers throughout the country and creating job opportunities.”
Primark is also on track to have 60 stores in the US by 2026. Expansion in the US has been evident in 2023 with new store openings in Maryland, Illinois, New York, and North Carolina.
Primark's sustainable vision
Beyond expansion, Primark has prioritised sustainability, launching the Primark Cares strategy in 2021. With a commitment to producing affordable yet sustainable products, the retailer said it has already achieved a milestone with 50% of its clothing being made from recycled or sustainably sourced materials.
The retailer has set a goal to double this figure by 2030.
Primark FY22/23
For the 52 weeks ending 16 September 2023, the UK remained Primark’s strongest performing region, with like-for-like (L-F-L) sales growing 10%.
The rest of Europe saw reported L-F-L sales up 8%, which, according to GlobalData analyst Alice Price, “is a concern considering the region was 18% down on pre-pandemic levels last year.”
The fashion retailer opened 18 stores across the region in FY22/23, with, as Price stated, “aggressive store expansion needed to help increase visibility and steal share from local players such as Kiabi and Pepco.”
