Any UK retailer that sets off for the US does so with a warning from history – Tesco's disaster with Fresh & Easy was one flop among many for UK shopkeepers. Will Associated British Foods do better with Primark?
There are no guarantees but the corporate thinking looks sound. First, AB Foods seems to have learned the importance of starting cautiously. A plan to open 10 stores between Boston and Baltimore hardly represents an ambition to conquer a continent in one go.
Second, AB Foods is a family-controlled and conservative organisation. If US shoppers don't flock to Primark, one suspects it will avoid the hubris and "just one more push" thinking that infected Tesco's boardroom.
Third, many European fashion retailers, from H&M and Zara, have succeeded in the US. If they can do it, Primark's chances ought to be better than even. Given the size of the US market, the bet is worth taking.
