Primark must continue to scrutinize its activities in Germany. The Irish textile discounter is now specifically testing in Hanover whether smaller branches will help as a measure against falling profitability.
“We are currently examining a number of strategic options. We are currently in talks with the landlords of our store properties,” said a spokeswoman for the fashion chain.
As part of the strategic options, Primark is testing a reduction in store space at its Hanover location. “Other specific decisions have not yet been made,” says Primark. The specialist magazine Textilwirtschaft previously reported on this step.
As early as November, Primark announced that it would downsize or close branches in Germany. Two Primark stores in Weiterstadt and Berlin will close this year.
The German market has been worrying Primark for some time. After the initially very successful market entry in 2009, the retailer opened branches in this country that were larger than average. But weakening demand has been a problem for years. The profitability of the locations in Germany had fallen to an “unacceptable level” due to the falling area productivity, the company admitted when it announced its business figures.
