Penneys owner Primark has cut the ribbon on its first store in the Middle East after opening a franchise outlet in Kuwait City on Thursday.
The fashion retailer has partnered with Kuwaiti international retail franchise operator Alshaya Group to open the store at Grand Plaza at the Avenues, the largest shopping centre in the Gulf state.
The opening was attended by interim Primark chief executive, Irishman Eoin Tonge, and Ireland’s ambassador to the United Arab Emirates, Kuwait, and Qatar, Alison Milton.
Mr Tonge said the opening of Primark’s 60,000 sq ft store in Kuwait City also marks the Associated British Foods-owned brand’s 18th international market entry.
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“Combined with Alshaya’s deep market expertise and close partnership, we believe today represents an important and exciting new growth chapter,” Mr Tonge said.
With Alshaya, Primark is set to open three stores in Dubai in the first half of next year. It is also planning to open its first store in Manhattan next year, 10 years after its initial arrival in the US.
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In a trading update that disappointed analysts, ABF reported annual sales growth at Primark of 1 per cent in the third quarter and forecast the same for the typically busy fourth quarter of the year.
While it said trading in the UK and Ireland had improved steadily, ABF warned of a softer consumer demand environment in Europe.
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Group chief executive George Weston said the trading environment remains “challenging”, with consumers worried about inflation and “political turmoil” on the Continent.
“We shouldn’t be surprised at all in Europe that with the political turmoil in parts of it and a consumer squeeze, particularly among the less affluent, that we should see sales [being] hard to win,” Mr Weston said in an interview at the time.
“It’s a difficult time to be selling consumer goods to less affluent people across Europe.”
