Primark bets on Italy: 150 million investment plan to 2030
The aim is to double the number of outlets to around 35 shops
by Enrico Netti
3' min read
3' min read
Moving from the current 17 shops to 34 or 35 within five years. A race to double for Primark, which wants to be present with its own brand throughout Italy by investing around 150 million euros in the next few years, an operation that will lead to the creation of 2,500 direct jobs.
The Irish multinational brand that belongs to the British group Ab food, among the brands in its portfolio Ovaltine and Twinings, has a plan to open an average of three or four shops a year, family clothing shops that are developed on large surfaces ranging from 3,500 to 4,500 square metres. "On Thursday 12 December we will open a shop in the Maximall shopping centre in Salerno Pontecagnano," explains Luca Ciuffreda, head of Primark Italy. "Then in 2025 it will be the turn of the one in Cosenza. In 2026 we will also open in the centre of Genoa and in a shopping centre in Parma'. For each shop, the investment is on average between 8 and 10 million euro, while the number of staff employed varies between 150 and 500 in the case of the larger shops such as the one in the centre in Arese, near Milan.
The Italian market, along with the French market, are among the best in terms of performance with a 12% increase in sales in the fiscal period 2023-2024 that ended on 14 September. In terms of productivity, the value of sales per square metre, the Italian shops are among the multinational company's best. At group level, Primark expects single-digit sales growth, while a +4 or +5% increase in sales is expected from the programme of new openings worldwide.
In implementing this development strategy, the focus is on flexibility in the choice of areas to be covered. While the consolidated model is that of the large shops in shopping centres, an alternative and relatively lighter format has also been developed for the city centre, with a sales area of about 2,500 square metres like that of the Livorno shop. In the UK we offer the click & collect experience and there is a good chance that it will also be implemented in Italy," continues the top manager. "Digital drives customer choices, but the core business for us is the physical in-store experience. Forty per cent of customers who order online when they collect in the shop buy other products".
Work is also being done to enrich the sales experience by bringing novelties tested abroad to the Italian market. "The focus is on personal care and the cafeteria," explains Ciuffreda, "with spaces dedicated to nails spa, women's hairdressing, and barber shops, as well as themed bars such as the Disney Café or the Hello Kitty bar. All activities managed by partners'.
