Irish fashion retailer Primark is preparing to expand into Abu Dhabi after a hugely successful debut in Dubai, according to its regional partner Alshaya Group.
Alshaya Group confirmed that discussions are underway with major landlords in Abu Dhabi, with plans expected to be announced soon. The company said the strong response to Primark’s UAE launch has prompted it to accelerate its expansion strategy in the region.
John Hadden, chief executive of Alshaya Group, said the company was moving faster than originally planned. “We want to be more aggressive and grow quicker than what we originally planned,” he said, adding that Abu Dhabi is expected to be “certainly within the next 12 months.”
Hadden said the company was currently evaluating locations in Abu Dhabi and also reviewing additional sites in Dubai. “We’re looking at locations at the moment, because it needs a big space and big space is difficult to find,” he said.
The planned Abu Dhabi expansion follows Primark’s strong performance in Dubai, where the retailer opened three large-format stores in less than eight weeks. The latest outlet at Mall of the Emirates opened on May 21 after the company fast-tracked the launch in response to strong customer demand.
Beyond the UAE, Alshaya Group said two Primark stores are also scheduled to open in Bahrain and Qatar later this year. “Beyond UAE, two Primark stores will open in Bahrain (October) and Qatar (opens approximately October-November) later this year,” Hadden said, adding, “and then we’ll continue the expansion in Dubai through the start of next year. Again, we’re talking to landlords, but nothing confirmed at the moment, apart from Bahrain and Qatar.”
According to the company, Primark has already attracted around one million shoppers in Dubai and sold nearly four million items since launch.
“We’ve sold 4 million units,” Hadden said. “10 per cent of that is pajamas. So, we sold 400,000 sets of pajamas.”
The retailer said Dubai consumers had responded strongly to Primark’s low-cost fashion offerings and product quality.
“Prices are the same as in Europe,” Hadden said. “I don’t think they appreciated necessarily the price proposition… and also the quality of the product and the fashionability of the product.”
He added that the store at City Centre Mirdif had exceeded expectations. “The real nice part has been Mirdif,” he said. “That store has done particularly well for us.”
Primark’s launch also received a visibility boost after Mohammed bin Rashid Al Maktoum visited the Dubai Mall store. “We had Sheik Mohammed walk through the store,” Hadden said.
Khalifa Bin Braik, CEO of Majid Al Futtaim Asset Management, said the retailer’s launch had generated strong customer interest.
“We saw an incredible response following Primark’s opening at City Centre Mirdif, so it’s exciting to now bring the brand to Mall of the Emirates… as part of our growing partnership with Alshaya Group,” he said, adding that City Centre Bahrain would be the next step in the regional rollout.
