Primark (known as Penneys in the Republic of Ireland) is an Irish clothing and accessories company, which is owned by Associated British Foods (ABF). The first Penneys store was opened in June 1969 on Mary Street, Dublin, with this original store still in operation to this day.
Since its inception in 1969, Primark has grown considerably over the years, engaging in international expansion.
It now has more than 380 stores in 13 different countries across Europe and America. It opened its first UK store in 1974 but was forced to change its name to Primark because the US company JC Penney had trademarked the name in the UK. The company’s major expansion into the UK really happened in the mid-2000s, leading it to become a staple on Britain’s high streets. In 2005, it bought the Littlewoods retail stores for £409 million, retaining 40 out of the 199 stores and selling the rest. In May 2006, the first Primark store outside Ireland and the UK opened in Madrid, Spain. Since then, it has marched steadily across the continent, opening stores in the Netherlands, followed by Portugal, Germany, Belgium and Austria. It expanded into France in 2013 and its first Italian store opened in 2014. This expansion saw Primark’s sales rise by 150 per cent between 2009 and 2014, making it a new force in the global rag trade.
However, the company had its sights on further expansion and in 2015 made a bold move, opening its first US store in Boston, followed shortly by the establishment of eight other stores in the United States. Taking on a US market worth US$200 billion was a big challenge for Primark, demanding an initial capital investment of US$340 million. In 2017, further plans for expansion were revealed when it opened 29 additional stores, mainly outside the UK, in an attempt to gain an even deeper presence in Europe and the USA.

Questions
1. What factors have allowed Primark to sustain its price leadership position? How has it used price to convey a differential advantage and appeal to a certain market segment?
2. Highlight the main ethical concerns associated with Primark’s pricing approach. What evidence is there that Primark has taken these ethical concerns seriously and has shown commitment to a range of ethical and environmental issues?
3. What are the strategic options open to Primark? Given the loss to its business due to COVID lockdowns, should the retailer seriously consider a move into online retailing and develop an e-commerce website?
Why, or why not?
4. Why do you think Primark made the decision to move into the US market? What are the opportunities and challenges associated with this decision?