Irish fashion store Primark has found one of its greatest market niches in Spain.
The low-cost retailer announced sales of €1.17 billion between September 2014 and August 2015, a 20% leap from the previous year.
Of this amount, €248 million represent sales by the Spanish branch to its Irish headquarters. This means that Primark’s product sales in Spain were €919 million, up 16.2% from the same period the previous year.
The figures consolidate Primark as the second-largest fashion chain in Spain by sales. Inditex, owner of Zara and other popular brands, continues to top the chart with sales of €4 billion. But the Irish chain has bested other well-established brands such as Mango (€360 million), H&M (€830 million) and Cortefiel (€700 million).
The figures consolidate Primark as the second-largest fashion chain in Spain by sales
Primark’s growth in Spain is considerably higher that in the other countries where owner Associated British Food (ABF) operates the fashion brand. In these 10 markets, Primark sales grew 8%.
The Irish budget brand did not open any new stores in Spain during this period, and had 40 establishments on August 31. The flagship store on Madrid’s Gran Vía, whose inauguration drew long lines and strong media attention, did not open until October 2015, and will thus be included in the 2016 accounts.
Because of the Spanish branch’s payments to headquarters, it is difficult to gauge whether the company’s profits are tied to its activities in Spain. The company paid €7.8 million in Spanish taxes on a gross profit of €54.4 million.
English version by Susana Urra.