Despite an unpredictable U.S. tariff environment under President Donald Trump’s administration, Associated British Foods $ABF.L is forging ahead with its ambitious U.S. expansion strategy for its fast-fashion subsidiary, Primark. The company’s retail division, which includes the popular budget clothing brand, currently operates 29 stores across the United States and has signed leases for another 18 — all part of a bold plan to reach 60 outlets by 2026.
CEO George Weston reaffirmed Primark’s long-term U.S. commitment during a Tuesday statement, underscoring the group's confidence in navigating a market that has proven challenging for several major UK retailers.
British retailers have historically faced uphill battles in the U.S. retail sector. Brands such as Marks & Spencer $MKS.L and Tesco $TSCO.L previously attempted to break into the market, only to retreat after underwhelming results and operational challenges.
However, Primark is taking a differentiated approach. Rather than replicating UK business models, the company is tailoring its U.S. operations with localized offerings and strategic location planning.
Cost Leadership Focus
Primark maintains razor-thin margins to keep prices low, targeting value-conscious American consumers without compromising on style.
Large Format Stores
The retailer favors expansive, mall-based footprints that allow for a wider range of product categories and visual merchandising, driving high foot traffic.
No E-Commerce Channel
Unlike many competitors, Primark operates exclusively through brick-and-mortar locations, banking on impulse purchases and in-store experience.
Aggressive Leasing
The brand has already locked in locations across key metropolitan areas, leveraging lower post-pandemic retail rents.
Brand Recognition via Word of Mouth
Primark is relying on organic buzz and positive customer experiences to grow brand awareness, especially in urban and tourist-heavy areas.
The commitment to U.S. expansion comes at a time when geopolitical trade uncertainty and tariff policy changes continue to disrupt retail supply chains. Despite these headwinds, AB Foods appears undeterred, citing confidence in its sourcing diversification and long-term real estate strategy.
Primark’s U.S. business currently contributes around 5% of the division's total sales, but the share is expected to grow as more stores open.
AB Foods has not signaled any significant supply chain disruption from recent tariff adjustments targeting various trading partners, including Vietnam and India — countries where its suppliers operate.
The company continues to view the U.S. as a strategically critical market with substantial untapped potential for its low-cost fashion model.
While expansion continues, several elements could influence the pace and profitability of Primark’s U.S. operations:
Changes in U.S. trade policy under evolving leadership
Competitive pressure from domestic players like Target and Walmart in affordable fashion
Consumer trends toward sustainability and supply chain transparency
Macroeconomic indicators, including inflation and disposable income trends
Real estate dynamics and shifts in retail foot traffic post-pandemic
Primark's success in the U.S. could mark a rare victory for a British retailer abroad, signaling a potential blueprint for others still considering cross-Atlantic ventures.
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