International retailer Primark is closing out the year with 24 new U.S. stores — and it has no plans of slowing down.
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Primark is a discount retailer known for its low prices and large selection of clothing, accessories and housewares. The Ireland-founded brand on Tuesday announced plans to open its first store in a North Carolina mall and another in New York, each 30K SF.
Primark operates 21 stores across eight states, including locations in Philadelphia, Chicago and Boston. Last year, it opened 10 new stores across the Northeast. This year has seen eight new stores and expansion into the Washington, D.C., Maryland and Virginia market. The retailer plans to reach 60 stateside stores by 2026, with a heavy focus on openings in the Southeast.
The dozens of new U.S. locations fall in line with Primark's global expansion plans of reaching 536 locations by 2026, about 100 more than its current footprint.
Primark's real estate consists of standalone stores and spaces in malls, where it typically leases large amounts of space. In September, it signed a lease in a Chicagoland mall for 37K SF. Its first seven deals in the Northeast accounted for over 500K SF in locations such as the American Dream mall in New Jersey, where it leases 42K SF, and King of Prussia mall in Philly. The pandemic's retail downturn allowed the brand to lease excess shopping center space in 2020 and 2021.
Retail net absorption is on the upswing, according to JLL, increasing 12.6% quarter-over-quarter to 10.8M SF at the midpoint of 2023.
Shopping centers have less available space to lease than at any other time since the Great Financial Crisis of 2008. Luxury retailers are taking up some of the space, accounting for 38% of new store openings. Another popular tenant is celebrity-owned retail brands, which boomed during the early pandemic years. That is particularly benefiting traditional malls, as 76% of superstar retail brands like Rihanna's Savage X Fenty and Kim Kardashian's Skims find homes in malls.
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