Primark's Bold U.S. Expansion Amidst E-commerce Challenges

Primark is accelerating its U.S. expansion, opening new stores and boosting marketing efforts as tariff changes by President Trump favor brick-and-mortar retailers over online platforms. Despite increasing its own prices, Primark remains competitive, seeing its U.S. sales surge 23% in its latest financial half-year.

Primark is making significant strides in its U.S. expansion by increasing store openings and ramping up marketing strategies. This comes in response to policy changes under President Trump's administration that eliminate duty exemptions on e-commerce parcels, thus shifting the retail landscape in favor of physical stores.

With the U.S. removing duty-free treatment on goods under $800 from China, online competitors like Shein and Temu are forced to raise prices, giving Primark an edge despite its own price hikes. The brick-and-mortar retailer sees an amplified opportunity in the U.S. market, where sales soared 23% year-over-year for the latter half of its financial year.

Primark plans to open 60 stores by September 2026, aiming to replicate its European success in the U.S. by focusing on value-oriented offerings. Its marketing expenditure has jumped significantly to raise brand awareness, with a notable increase in visits to its U.S. website, indicating growing customer interest.

(With inputs from agencies.)