Primark, the fashion retailer with razor-sharp values that is steadily expanding across the U.S., now has its eyes on growth south of the border.
The Dublin-based specialty retailer plans to soon open its first stores in Mexico through a strategic partnership revealed Thursday with El Puerto de Liverpool. The new stores will be operated under a franchise model.
Primark already operates more than 500 stores across 19 markets, including 44 in the U.S.
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And Mexico, with a population of nearly 130 million, has a well-established retail market. Walmart Inc. is the biggest retailer in the country. Still, Mexico represents a significant opportunity for Primark, considering the deep fashion values the store offers and Liverpool’s deep understanding of Mexican consumers and operational capabilities. Liverpool is one of the country’s largest retail groups.
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“As we continue to expand internationally, we are seeing growing demand for the unique combination of quality, style and affordability that defines Primark,” said Eoin Tonge, chief executive officer of Primark, in a statement. “We believe our proposition will resonate strongly with Mexican consumers and are delighted to be partnering with El Puerto de Liverpool, whose experience and deep market understanding make them the ideal partner to support our growth in the market.”
Primark’s strength lies in delivering fashion at very low prices, undercutting competitors like H&M, Zara and Uniqlo, and presenting heavily merchandised floors. The great majority of Primark’s goods are private label, though there is a wide range of licensed merchandise revolving around sports, music and pop culture, including Disney characters, the New York Knicks, Britney Spears and “KPop Demon Hunters” with Netflix. Last May, it opened a large flagship on 34th Street in Manhattan, opposite Macy’s Herald Square
Enrique Güijosa, CEO of El Puerto de Liverpool, said, “By combining Primark’s globally recognized retail model with El Puerto de Liverpool’s deep understanding of the local market and operational expertise, we look forward to delivering a relevant and compelling offering while building a strong foundation for long-term growth in Mexico.”
Primark and Liverpool plan to work together to define locations, store openings and the pace of expansion. Further details will be disclosed as that process continues.
Liverpool recently established an entity to license and distribute brands across Mexico. The strategy began with Dockers earlier this year, though several other brand partnerships have been since established.
The company operates 125 Liverpool department stores, 72 Liverpool Express stores and 196 Suburbia stores, as well as 173 specialty boutiques and 30 shopping centers across the country. It is also a leading issuer of credit cards in Mexico, with more than 8.8 million cardholders. At Liverpool, more than 50 percent of sales are made using the company’s proprietary payment methods.
Primark has only a handful of franchised stores, which are in the Middle East and operated through a partnership with the Alshaya Group.
While Primark specializes in fashion, Liverpool has an eclectic assortment ranging from fashion and interior design to food and beverages, home goods and technology. Liverpool has more than 83,000 employees across Mexico. It also owns a stake in Nordstrom.