Primark launches in Boston: Will the Irish retailer’s dream become a reality?

In a bid to turn Primark into a global brand, the company is finally stepping out of its Western Europe comfort zone and making its American debut with its first store launch today (10 September) in Boston.

 

Other leading European brands such as H&M and Topshop entered the US with stores in New York City, undoubtedly the showcase for fashion in North America and also a tourist hotspot that would expose the brand to a wider audience. Boston, however, is home to a large student population that are likely to be key drivers of demand, while the brand’s Irish heritage may provide a cultural synergy.

 

But building brand awareness could prove problematic. Traditionally, Primark has relied heavily on word of mouth. Although this has proved successful in smaller markets, additional marketing may be required to ensure success in the US. Opening stores in second-tier cities, such as Staten Island, is a logical strategy; however, it will create further challenges in the effort to obtain worldwide brand exposure. 

 

Despite the obvious challenges that come with entering a crowded competitive market, growth prospects lay ahead; the US apparel and footwear market is expected to increase from US$329bn in 2014 to US$342bn to 2019. Aside from the huge potential of its women’s and men’s clothing ranges, the US boasts the largest sportswear market in the world.

 

Primark’s recent investment into this category will position the brand well in order to capitalise on the prominent "athleisure" trend and increasing demand for activewear. Furthermore, due to the nature of children’s clothing, the brands low prices for both basic and fashionable items is likely to prove favourable with consumers, mirroring trends seen in Western Europe. 

 

Success is far from guaranteed in the US, although Primark’s product offering and price proposition is likely to be a hit with consumers. The apparel industry landscape is shifting in the US as consumers look to premium labels for investment pieces and fast fashion brands for the latest trends at low prices, placing pressure on mid-tier retailers such as Gap and J Crew. Fast fashion has become so globally homogeneous that what works in Western Europe ought to work just as well in the US, clearly illustrated by the rapid expansion and success of European brands H&M and Zara, as well as home-grown brands Old Navy and Forever 21. 

 

Indications of a fruitful launch in the US suggest this could be a prelude to a wider global expansion plan, but if all else fails, Primark has a quick-exit strategy lined up – just in case.