Primark Reports Strong US Sales Amid Mixed European Performance

What's Happening?

Primark, owned by Associated British Foods (ABF), has reported strong sales growth in the United States, while experiencing mixed results in Europe. For the 52 weeks ending September 13, 2025, Primark is expected to achieve a 1% sales growth, driven by its store rollout program which contributed approximately 4% growth. Despite this, like-for-like sales are anticipated to decline by around 2% in the second half of the year, with specific declines of 2.4% in Q3 and around 2% in Q4. In the UK and Ireland, sales grew by about 1% in the second half, marking an improvement over the first half. Primark's market share increased from 6.6% to 6.8%, supported by strong womenswear ranges, favorable weather, and enhanced digital engagement. The retailer's Click & Collect service, now available in all 187 UK stores, continued to gain traction.

Why It's Important?

Primark's performance highlights the varying consumer environments across different regions. The strong sales growth in the US, projected at 23% in the second half, underscores the brand's successful expansion strategy and its value proposition resonating with American consumers. Conversely, the softer trading conditions in continental Europe, particularly in France and Italy, reflect challenges in weaker domestic markets. The mixed results in Europe, with growth in Spain and Portugal but declines in Northern Europe, indicate the complexities of operating in diverse economic climates. Primark's ability to maintain its operating margin through cost efficiencies and investments in product, brand, and digital initiatives is crucial for sustaining its competitive edge.

What's Next?

Primark is preparing for its first Middle East openings, with a store in Kuwait set to open in October, followed by two in Dubai in early 2026. This expansion into new markets represents a strategic move to diversify its geographical footprint and tap into emerging consumer bases. The continued investment in store openings and digital initiatives suggests Primark's commitment to growth and adaptation in a volatile retail environment. Stakeholders will be watching how these expansions impact overall performance and whether Primark can replicate its US success in other regions.

Beyond the Headlines

The expansion into the Middle East could have broader implications for Primark's brand positioning and market strategy. Entering these markets may require adjustments in product offerings and marketing approaches to align with local consumer preferences and cultural norms. Additionally, the focus on digital engagement and Click & Collect services reflects a shift towards integrating online and offline retail experiences, which could influence long-term consumer behavior and expectations.