Primark is accelerating its US retailer openings and ramping up advertising, betting that president Donald Trump’s transfer to scrap an obligation exemption on e-commerce parcels will drive budget-conscious customers away from on-line rivals and again to shops.
The US administration in May ended “de minimis” duty-free therapy of products underneath $800 ordered on-line from China, hurting on-line fast-fashion platforms like Shein and Temu that ship immediately from Chinese factories to customers’ doorsteps.
The transfer pressured Shein and Temu to lift US costs and tilted the taking part in subject in favour of shops like Primark that promote in shops and import in bulk to US warehouses.
While Primark’s personal costs have additionally risen as a result of Trump’s broader tariff hikes, it’s now extra aggressive versus on-line rivals that face duties on their merchandise for the primary time.
Primark Shuns Online Delivery
Primark, the flagship of the London-listed Associated British Foods conglomerate, sells fashionable, low-priced clothes via 475 shops in 18 nations, producing practically 10 billion kilos ($13.4 billion) in annual gross sales and greater than 1 billion kilos in revenue – all with out providing dwelling supply.
Primark says transport to houses doesn’t make monetary sense given its low costs and the excessive fulfilment prices, although customers can view its ranges on-line and Click & Collect is on the market in Britain.
Having constructed a loyal following in Europe, Primark sees a possibility to crack the US market, and believes its funds focus may help it succeed the place less-differentiated UK retailers like Tesco, Marks & Spencer and Topshop failed. The US presently accounts for about 5 % of Primark’s world gross sales.
Since coming into the market in 2015 with a Boston retailer, it now operates 33 places throughout 13 states, backed by distribution hubs in Pennsylvania and Florida.
“We think we’ve got a very relevant offer there. We just know that not many consumers know us,” AB Foods CEO George Weston informed Reuters final month. “So hence the logical step of increasing the communications weight.”
Primark’s digital advert spend surged by a median of 175 % in April to September, in contrast with March, and has been rising each month, information from market analysis agency Sensor Tower exhibits.
And visits to its US web site jumped 67.9 % year-on-year in January to September, in line with analytics agency Semrush.
Meanwhile, Shein slashed its US advert spending within the second quarter, earlier than a slight restoration in July-September, whereas Temu’s spend plunged 90 % and 70 % within the second and third quarters, respectively, Sensor Tower information confirmed.
Helped by new retailer openings and the transfer to extend consciousness of its model, Primark’s US gross sales rose 23 % year-on-year within the second half of its monetary 12 months ending September 13, up from 17 % within the first half.
“The winds are blowing towards stores, even though they are still growing slower than online,” mentioned Aaron Cheris, a Bain marketing consultant in San Francisco. Lower-income Americans hit by inflation are specializing in necessities, he mentioned.
“If I’m a value-focused retailer whose assortment is focused on basics, I think I feel better than if I’m a mid-priced retailer focused on stuff to go out.”
Ashley Pottinger, 23, mentioned she realized about Primark via a buddy. She mentioned she visits its retailer in Newport Centre mall in Jersey City, New Jersey, just a few instances a month to purchase gear together with $20 sweaters, $9 scarves and $5 perfumes.
Expansion Drive Gathers Pace
While some firms have paused US enlargement amid tariff uncertainty, Primark is urgent forward. It opened six shops in its 2024/25 fiscal 12 months – together with first-time entries in Texas, in McAllen, and Tennessee, in Memphis – and plans to develop its community to 60 shops by September 2026.
It has signed 18 further leases, together with a primary outlet in Minnesota and a flagship in Herald Square, Manhattan.
“We’ve got the biggest programme of store openings in 2026 and the second biggest was 2025, so I think you can see the direction of travel,” mentioned Weston.
Rene Federico, Primark’s US head of selling, mentioned the Manhattan retailer can be a serious milestone. “That will do a lot for our brand in terms of establishing us as a player in the US,” she informed the ‘Retail Unwrapped’ podcast.
AB Foods has mentioned it sees “huge potential” for Primark within the United States, significantly in untapped states such as California.
Cheris mentioned newcomers fare higher after they cluster shops regionally slightly than unfold thinly nationwide. Some analysts consider Primark’s mixture of worth, vogue and vary means it might ultimately construct a US enterprise as giant as its European one, difficult the likes of Old Navy, TJ Maxx, Target and Walmart on their very own turf, as properly as Sweden’s H&M and Spain’s Inditex.
“There are many more people out there that love us, they just don’t know it yet,” added Federico.
By James Davey, Helen Reid
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