Primark, the discount fashion retailer which previously shocked the industry by having a concession in Selfridges, has now branched out even further as it plans to rent space in Sears, the US multinational department store chain.
Primark which is one of Europe‘s fastest growing clothing chains is opening approximately seven stores in Sears within the next year and a half.
‘Primark has a strong consumer following in nine countries in Western Europe. After extensive research it has been decided to take the concept to consumers in the USA‘ the discount retailer said.
Sears, has for years been struggling financially, therefore renting some of its floor space is the latest attempt to generate profit.
Sears Holdings chairman and chief executive Edward Lampert said: “Partnering with a globally recognized brand such as Primark to help establish its store base in the North Eastern United States is testimony to both our attractive store locations and our focus on transforming Sears by working with other retailers, mall owners and brands.”
Primark will lease around 520,000 gross square feet of retail space. However the US has proved to be a tricky market for UK retailers, with the likes of M&S and Tesco failing to make their brands a success in the states. Nonetheless with the likes of Topshop succeeding in the US, it gives Primark hope.
Jeff Stollenwerck, president of real estate for Sears Holdings, said: “These lease agreements with Primark illustrate how Sears Holdings is strategically transforming one of the largest retail real estate portfolios in the United States over time while continuing to operate its existing stores in large, but rationalized selling space.”
Financial terms of the deals were not disclosed.
