Primark seizes US opportunity as Trump hits online rivals

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 online rivals and again to shops.

The US administration in May ended “de minimis” duty-free therapy of products underneath $800 ordered online from China, hurting online fast-fashion platforms like Shein and Temu that ship immediately from Chinese factories to customers’ doorsteps.

The transfer compelled Shein and Temu to boost US costs and tilted the enjoying discipline in favour of outlets like Primark that promote in shops and import in bulk to US warehouses. While Primark’s personal costs have additionally risen as a consequence of Trump’s broader tariff hikes, it’s now extra aggressive versus online rivals that face duties on their merchandise for the primary time.

Primark, the flagship of the London-listed Associated British Foods conglomerate, sells stylish, low-priced clothes by 475 shops in 18 international locations, producing practically 10 billion kilos ($13.4 billion) in annual gross sales and greater than 1 billion kilos in revenue – all with out providing residence supply.

Primark says delivery to properties doesn’t make monetary sense given its low costs and the excessive fulfilment prices, although customers can view its ranges online and Click & Collect is out there in Britain. Having constructed a loyal following in Europe, Primark sees an opportunity to crack the US market, and believes its price range focus may also 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 international gross sales.

Since coming into the market in 2015 with a Boston retailer, it now operates 33 areas 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, knowledge 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 accordance 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 knowledge 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 yr 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,” stated Aaron Cheris, a Bain advisor in San Francisco. Lower-income Americans hit by inflation are specializing in necessities, he stated.

“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, stated she discovered about Primark by a pal. She stated 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.

While some corporations have paused US growth amid tariff uncertainty, Primark is urgent forward. It opened six shops in its 2024/25 fiscal yr – 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,” stated Weston.

Rene Federico, Primark’s US head of promoting, stated the Manhattan retailer can be a significant 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 stated it sees “huge potential” for Primark within the United States, significantly in untapped states such as California.
Cheris stated newcomers fare higher once they cluster shops regionally relatively than unfold thinly nationwide. Some analysts consider Primark’s mixture of worth, style and vary means it might ultimately construct a US enterprise as massive 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.