Primark has struck a surprise deal to take over unwanted retail space in American shopping malls from retailer Sears as the UK fashion chain looks to kickstart its US expansion.
In the spring Primark signalled its ambition to conquer the US, starting with north-eastern states such as New York and New Jersey, with around 10 stores planned for the populous metropolitan corridor that runs from Boston to Baltimore.
The first outlet is scheduled to open in Boston at the end of next year and Sears added further detail to Primark’s expansion plan by telling investors that it had leased enough space for seven stores to the fashion chain as it looks to reduce the size of its more than 2,000-strong estate. More than 48,310 sq metres (520,000 sq ft) of space will be handed over to Primark over the next 12 to 18 months, Sears said. Locations that include the King of Prussia mall near Philadelphia, which with more than 400 stores is one of the biggest in US, and the Staten Island mall.
Given the size of the Sears chain, analysts suggested the relationship could lead to further deals. The US company’s property director, Jeff Stollenwerck, said its ambition was to strategically transform what was “one of the largest retail real estate portfolios in the United States”.
Darren Shirley, an analyst at Shore Capital, said: “We believe the announcement could herald the start of a process whereby Primark underpins its new space requirements across the USA through further arrangements with Sears, providing both access to a raft of prime sites across the country and good visibility on new space development with stores opened in clusters.”
