Primark eyes growth again in Germany with new store openings

Nov 19 (Reuters) - Associated British Foods' fashion chain Primark said on Wednesday it was eyeing growth in Germany again with a new approach after years of cutbacks and restructuring.

The fashion chain opened its first new German store in five years on Wednesday. It was planning to open two more, seeking to reverse a decline in sales, Primark sales director for Germany and Austria, Sandra Luxem-Bremen said in a call with journalists in remarks released on Wednesday.

The budget retailer has invested in improving its products, pricing and online engagement with customers to address tough competition and weak consumer demand in European countries such as France, Italy and Germany.

Lower sales in Germany, in particular, led to a 1% decline in Primark's Northern European sales in the fiscal year ending September 13, according to ABF's annual report.

The new shops, smaller and more focused on local needs, would help increase efficiency and profitability in Germany, Primark said.

In the past years, the company closed five stores in the country, with one more closure planned in the first quarter of next year, amid competition from online retailers such as Shein and Temu.

Some stores were too big or too close to one another, while in some regions the brand was not at all present, said Luxem-Bremen. (Reporting by Linda Pasquini and Emanuele Berro in Gdansk Editing by Ludwig Burger)

AB Foods