After closing several stores in recent years, Primark wants to return to growth in Germany. The retailer opened its first new German store in five years this week and plans to open two more locations to reverse the recent decline in sales.
More compact stores
Primark has closed five German stores in recent years and will close one more in the first quarter of next year, but at the same time, the fashion chain is focusing on expansion again: its first new store since 2019 opened last Wednesday. After years of downsizing and restructuring, Primark is refocusing on Germany, said Sandra Luxem-Bremen, sales director for Germany and Austria, in a conversation with journalists reported by Reuters.
The chain is under pressure from online players such as Shein and Temu, and some of its stores in Germany were too large or too close together. New stores will be more compact and better tailored to local needs. Primark hopes this will increase efficiency and profitability in Germany. In addition, the company has invested in product improvements, a more competitive pricing policy, and greater online interaction with customers. In this way, Primark aims to counter fierce competition and weak consumer spending. Weak sales in Germany led to a 1% decline in Northern European revenue in the previous fiscal year.
