Headlines
Primark seizes US opportunity as Trump hits online rivals
Published by Global Banking and Finance Review
Posted on October 28, 2025
5 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 28, 2025
5 min readLast updated: January 21, 2026
Primark is expanding its US presence, capitalizing on policy changes affecting online rivals. The brand focuses on store openings and marketing to boost sales.
By James Davey and Helen Reid
LONDON (Reuters) -Primark is accelerating its U.S. store openings and ramping up marketing, betting that President Donald Trump's move to scrap a duty exemption on e-commerce parcels will drive budget-conscious shoppers away from online rivals and back to stores.
The U.S. administration in May ended "de minimis" duty-free treatment of goods under $800 ordered online from China, hurting online fast-fashion platforms like Shein and Temu that ship directly from Chinese factories to shoppers' doorsteps.
The move forced Shein and Temu to raise U.S. prices and tilted the playing field in favour of retailers like Primark that sell in stores and import in bulk to U.S. warehouses.
While Primark's own prices have also risen due to Trump's broader tariff hikes, it is now more competitive versus online rivals that face duties on their products for the first time.
PRIMARK SHUNS ONLINE DELIVERY
Primark, the flagship of the London-listed Associated British Foods conglomerate, sells trendy, low-priced clothing through 475 stores in 18 countries, generating nearly 10 billion pounds ($13.4 billion) in annual sales and more than 1 billion pounds in profit - all without offering home delivery.
Primark says shipping to homes does not make financial sense given its low prices and the high fulfilment costs, though shoppers can view its ranges online and Click & Collect is available in Britain.
Having built a loyal following in Europe, Primark sees an opportunity to crack the U.S. market, and believes its budget focus can help it succeed where less-differentiated UK retailers like Tesco, Marks & Spencer and Topshop failed. The U.S. currently accounts for about 5% of Primark's global sales.
Since entering the market in 2015 with a Boston store, it now operates 33 locations across 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 told Reuters last month. "So hence the logical step of increasing the communications weight."
Primark's digital ad spend surged by an average of 175% in April to September, compared with March, and has been rising every month, data from market research firm Sensor Tower shows.
And visits to its U.S. website jumped 67.9% year-on-year in January to September, according to analytics firm Semrush.
Meanwhile, Shein slashed its U.S. ad spending in the second quarter, before a slight recovery in July-September, while Temu's spend plunged 90% and 70% in the second and third quarters, respectively, Sensor Tower data showed.
Helped by new store openings and the move to increase awareness of its brand, Primark's U.S. sales rose 23% year-on-year in the second half of its financial year ending September 13, up from 17% in the first half.
"The winds are blowing towards stores, even though they are still growing slower than online," said Aaron Cheris, a Bain consultant in San Francisco. Lower-income Americans hit by inflation are focusing on essentials, he said.
"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, said she learned about Primark through a friend. She said she visits its store in Newport Centre mall in Jersey City, New Jersey, a few times a month to buy gear including $20 sweaters, $9 scarves and $5 perfumes.
EXPANSION DRIVE GATHERS PACE
While some companies have paused U.S. expansion amid tariff uncertainty, Primark is pressing ahead. It opened six stores in its 2024/25 fiscal year - including first-time entries in Texas, in McAllen, and Tennessee, in Memphis - and plans to grow its network to 60 stores by September 2026.
It has signed 18 additional leases, including a first 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," said Weston.
Rene Federico, Primark's U.S. head of marketing, said the Manhattan store would be a major milestone. "That will do a lot for our brand in terms of establishing us as a player in the U.S.," she told the 'Retail Unwrapped' podcast.
AB Foods has said it sees "huge potential" for Primark in the United States, particularly in untapped states such as California.
Cheris said newcomers fare better when they cluster stores regionally rather than spread thinly nationwide. Some analysts believe Primark's mix of value, fashion and range means it could eventually build a U.S. business as large as its European one, challenging the likes of Old Navy, TJ Maxx, Target and Walmart on their own turf, as well 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.
($1 = 0.7451 pounds)
(Reporting by James Davey and Helen Reid in London. Additional reporting by Arriana McLymore in New York. Editing by Mark Potter)
A duty exemption is a legal provision that allows certain goods to be imported without the payment of tariffs or duties, making them cheaper for consumers.
Click & Collect is a shopping method where customers can order items online and pick them up at a physical store, combining the convenience of online shopping with in-store pickup.
Fast fashion refers to a business model that rapidly produces inexpensive clothing in response to the latest trends, often leading to quick turnover in styles and inventory.
Retail trade involves selling goods directly to consumers, typically through physical stores or online platforms, focusing on customer service and experience.
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