Executive Summary

• Ultralow-price fashion retailer Primark entered the US market on September 10, 2015, with plans announced for an initial eight stores in the country. We are optimistic about Primark’s chances of success in the US, given American shoppers’ reluctance to spend big on fashion.
• Primark US could be generating around $1 billion in annual sales by 2019, we estimate, assuming the company opens an average of 7.5 American stores per year.
• The threat from Primark is greatest for fashion-driven, lower-midmarket and budget apparel specialists. Primark will also be a potential threat to other lower-end channels, including mass merchandisers and lower-end department stores, but those retailers whose core shopper is slightly older and more conservative are likely to be safer.
• After the US comes Italy, which Primark will enter in summer 2016. We are less confident of a strong performance there, given Italian consumers’ greater interest in fashion and their willingness to spend more substantially on clothing.