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The U.K.’s largest fast fashion retailer by market share is upping its investment in the U.S. with a massive supply chain move.
Primark is considering expanding its supply chain to accomodate several new U.S. store locations, the company told Reuters. Its new targets: Central American countries including Costa Rica, Guatemala, and Mexico.
With suppliers closer to its nine U.S. outposts, Primark can get $5 dresses in American customers’ hands faster while cutting transoceanic shipping costs.
- The demand for more Primark is evident: In 2017, its U.S. revenue grew over 103%.
- Primark has been relatively frugal with its U.S. operations so far. It’s spent $313 million since 2015 to open nine stores and operate one U.S. warehouse.
No matter where it’s opening stores, Primark looks to be apocalypse-proof. Primark generates more than half the total profit of parent company AB Foods...all without an e-commerce presence. In 2018, Primark's global revenue was $9.2 billion.