Irish fashion chain Primark's parent company, AB Foods, has revealed that the negative exchange rate fluctuations will not pose a problem for the chain's growth, with new stores planned for Italy soon.
American preparations full steam ahead
In the first 9 months of the fiscal year, Primark's turnover grew 9 %, but without exchange rate fluctuations, growth would have reached 13 %. AB Foods does expect the group's profit to drop some 25 million pounds (34.7 million euro), because of the dollar's strong position towards the euro.
In the summer of 2016, Primark will open the first of three new Italian stores in Milan. Italy is the second largest European clothing market, but the chain feels it is very hard to find large store locations there, which has hampered its arrival. Once the three stores have been deemed a success, it may add more stores in Italy.
Primark mainly has to watch out for cannibalization of its own store network. New stores in the Netherlands and Germany have resulted in lower turnover for its other stores in those areas.
In the meantime, the preparations for its first American store in Boston, which should open in September, are going according to plan.