The value fashion retailer, owned by Associated British Foods, will also open its first Dutch store in Rotterdam before Christmas and debut in Bremen, Germany, around Easter.
Panmure Gordon analyst Graham Jones, who has just returned from a visit to Primark’s stores in Spain, said that the retailer was thriving there and that Spanish shoppers have enthusiastically embraced it.
He said: “The challenge is to roll out the stores as quickly as possible. Primark initially struggled to get stores given its reluctance to sign turnover-based rent agreements, but the ability of Primark to generate footfall is not lost on Spanish shopping centre owners.
“From a portfolio of 12 stores, Primark has a pipeline of 20 more to open over the next two years. With a population of 40 million, Primark could sustain perhaps 70 stores in Spain.”
He said Portugal could be the next new market after Holland and Germany and noted: “While Primark is confident that its offering should be successful in a wide range of markets, it is acutely aware of significant cultural difference across Europe.
“The bottom line is if, for whatever reason, Primark does not take off in a particular country the cost will be negligible, but the upside could be dramatic.”
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