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ELMHURST, NY — The Queens Center mall now features a new retailer that may be unfamiliar to some local visitors.
In addition to popular stores like Macy’s, American Eagle, and Bath & Body Works, the shopping center has welcomed a Primark location. The discount clothing retailer, which has its roots in Ireland, opened in December and is expanding its presence in the United States.
Many malls and shopping centers throughout the U.S. are increasingly introducing international brands. Retailers like Primark, Spain’s Mango, Canadian brand Aritzia, and Japan’s Uniqlo are establishing new storefronts across the country, venturing beyond traditional markets in coastal areas such as New York City and Los Angeles.
According to data from GlobalData, approximately 19,000 new stores debuted in the U.S. from 2018 to 2023, with nearly 28% belonging to foreign-owned brands.
Recently, several international retailers have announced significant U.S. expansion strategies. Primark currently operates 29 stores in the U.S. and aims to reach 60 locations by the end of the following year, having secured leases in various locations such as El Paso, Texas; Memphis, Tennessee; Hyattsville, Maryland; and Miami, Florida.
Known as Penneys in Ireland, Primark has become a familiar name across Ireland, the U.K., and parts of Europe since its inception in Dublin in 1969. As it reaches a “maturity point” in certain European markets, the U.S. is increasingly seen as a critical area for growth, according to Primark U.S. President Kevin Tulip.
“The U.S. is the number one consumer market,” he noted. “Being here and getting it right is essential.”
The Allure of U.S. Retail Expansion
Other international brands share similar aspirations for the U.S. market.
Spain’s Mango recently unveiled a $70 million expansion plan, targeting 42 new locations throughout the U.S. by 2024 and adding an additional 20 stores this year. The company’s expansion efforts are focused in the Sun Belt and the Northeast, as CEO Toni Ruiz explained in a recent interview.
Canadian brand Aritzia is also rapidly growing, now almost matching its store count in the U.S. to that in Canada. Last year, it launched 14 new boutiques in North America, boosting its total to 61 locations in the U.S., including in major urban areas like Chicago and Miami, as well as smaller markets such as Plano, Texas, and Sacramento, California.
Further store openings are planned in cities like Scottsdale, Arizona, and Murray, Utah, as the company continues its expansion.
According to Monique Pollard, a retail analyst at Citi, the U.S. offers a fragmented market with diverse opportunities for these international brands. Furthermore, American consumers have demonstrated resilience in their spending habits compared to other markets currently challenged by inflation.
The rapid dissemination of fashion trends globally, influenced by platforms like Instagram and TikTok, has facilitated the entry of new brands into the U.S. market, as noted by John Mercer of Coresight Research. As a result, foreign brands are reportedly finding increased success compared to earlier years.
“The distinctions between markets have narrowed,” he stated, emphasizing that newcomers now have a greater chance of thriving.
Social media has played a pivotal role in introducing international brands to American consumers, particularly among younger demographics. A survey by Forrester revealed that 63% of consumers under 25 and 57% of those aged 25 to 34 engage with new products and brands through social media at least once a week.
Viral trends have benefitted some newcomers; for instance, products like Aritzia’s popular Super Puff winter coat and Uniqlo’s shoulder bag gained traction through social media exposure in recent years.
With many department stores and smaller retailers facing bankruptcy, opportunities have emerged for foreign brands to claim market share and fill vacant spaces in shopping centers. Macy’s, for instance, is in the process of closing around 150 locations across the country. Furthermore, various specialty retailers, including Buy Buy Baby and Babies R Us, have ceased operations, creating additional openings for newcomers.
Primark’s Tulip has noted a strong demand for children’s clothing in the U.S., highlighting that competition in this segment remains relatively low. Several Primark locations have also taken over spaces left by shuttered retailers, including J.C. Penney and Bed Bath & Beyond.
While brands like Mango, Aritzia, Uniqlo, and Zara are in the early stages of U.S. expansion with fewer than 100 stores in total, their footprint remains modest within the overall apparel market.
Currently, about 5% of Primark’s global sales originate from the U.S., a figure that Tulip anticipates will rise and is already influencing the retailer’s product offerings. For example, Primark has begun to increase its production of leisurewear to align with American consumer preferences.
Navigating the Expansion Landscape
However, success in new markets is not assured, and brands must contend with the potential for declining relevance. H&M, which was a pioneer for foreign retailers entering the U.S. market nearly 25 years ago, now faces growing competition, with recent reports indicating weaker sales amid tougher competition from low-priced retailers like Shein and Zara.
Meanwhile, Uniqlo’s owner, Fast Retailing, has had a mixed history in the U.S. The company previously experienced significant losses but is now committed to expanding, with plans to reach 200 locations in North America by 2027.
Primark’s approach to the U.S. market entailed learning from its previous experiences. After opening its first U.S. store in Boston, Primark carefully navigated its expansion by gaining insights into American shopping habits before moving further south and west.
Customer turnout at Primark stores has often been enthusiastic, with buyers queuing early for openings. However, the brand has encountered miscalculations. For example, its attempt to introduce licensed sports merchandise did not resonate as expected with U.S. shoppers, prompting a shift to focusing on local teams.
One unique aspect of Primark is its exclusive reliance on physical stores, which might pose a challenge compared to competitors like Amazon and Walmart that offer robust e-commerce platforms. More than half of the items in Primark’s inventory consist of everyday essentials such as underwear, t-shirts, and socks.
While newcomers adjust to the U.S. retail landscape, other brands like Zara have opted to maintain their current store count while expanding existing locations. Over the last decade, Zara’s average store size has increased significantly, adapting to a larger retail footprint.
The influence of these international retailers, although still small in the U.S., is already notable, presenting shoppers with fresh choices and increasing competition for domestic retailers.
Looking ahead, Primark is making clear its growth aspirations, with plans to open a new store in New York City’s Herald Square, just a short distance from Macy’s flagship location.
Amidst this backdrop, customers visiting Primark’s new Elmhurst store have been coming away satisfied. Shoppers like Jeanette Torres appreciate the affordable prices and pleasant shopping environment, favoring Primark over other discount retailers for its tidiness and vibrant atmosphere.
Others, such as Bruce Wolinsky, a retiree from Queens, discovered Primark unexpectedly during a mall visit, ultimately leaving with a pair of stylish sneakers instead of visiting Macy’s.
— CNBC’s Gabrielle Fonrouge contributed to this report.
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