Primark targets Germany in plan to take on Europe

Value fashion giant Primark is gearing up for a launch in Europe’s biggest retail market – Germany.

Retail Week has learned that Associated British Foods-owned Primark is also mulling opening in Scandinavia and Holland.

Outside the UK and Ireland, Primark’s overseas presence is limited to two stores in Spain. Its German ambitions will send shockwaves through the country’s£40 billion fashion sector and rattle potential rivals including value clothing retailers C&A and Adler. German shoppers, among the most price sensitive in Europe, are thought likely to give Primark a warm reception.

It is understood that Primark property director Tom Meager has been on scouting missions to Germany this year to explore opportunities in the country.

A Primark spokesman declined to comment, but said: “We are evaluating possibilities for expanding the brand outside current markets continuously.”

Management Horizons Europe chairman Edward Whitefield said there was great potential for Primark in Germany, which has a population of more than 80 million. “You are talking about a substantial number of stores with a substantial turnover,” he said.

“Primark has 170 stores in the UK and the potential in Germany is even larger – it could easily have well over 100 stores.”

Whitefield believes that a Primark launch could have a “very serious effect” on C&A, which has posted profit growth for many consecutive years.

The revelation came as Primark opened the last of the stores it acquired from Littlewoods, in Brighton. Last week, Primark closed its existing store and opened a much larger, 33,800 sq ft shop. Locals formed a long queue to be first into the store. “It is quite remarkable,” said the Primark spokesman.

Primark bought 120 outlets from Littlewoods in 2005 and has retained 41.

Last month, Primark said in a pre-close trading update that its sales and profits would be substantially ahead of last year. It forecast like-for-like sales growth of 7 per cent over the second half in stores unaffected by new openings.

In Ireland, Primark trades under the Penneys brand.