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STATEN ISLAND, N.Y. -- Primark -- a new retailer with Ireland roots currently invading the United States with six new stores, including one coming to the Staten Island Mall -- boasts of dirt cheap prices on fashion-forward clothing that beats most national brands.
And everyone from national discount merchants to shop-a-holics are wondering how Primark can offer such low prices.
With fashion-forward T-shirts starting at $4, sneakers as low as $7, and home accessories, such as scented candles for $3, Primark offers an array of eclectic merchandise.
We asked Jose Luis Martinez de Larramendi, president of Primark U.S. Corp.,
how the company can sell clothing so inexpensively.
"Primark's prices are low because Primark operates differently to other retailers," he said.
According to Martinez de Larramendi, here's why:
- Primark orders clothes in very big volumes so suppliers are able to offer lower prices to Primark because they can achieve efficiencies of scale, such as ordering fabric in bulk.
- Primark's profit margin is lower than normal.
- Primark does very little advertising and almost no marketing, keeping its costs down.
- Primark pays suppliers promptly so suppliers are again willing to offer lower prices to Primark.
- Primark works closely with factories whenever possible, cutting out middlemen, which reduces costs and complexity.
- Wherever possible raw materials are sourced close to where clothing is being manufactured, again keeping costs down.
TARGET MARKET
Martinez de Larramendi says Primark has product offerings for all ages.
"Primark offers customers of all ages up-to-the-minute trends with a constantly refreshed range of womenswear, menswear, childrenswear, home goods, beauty products and gifts -- all at value for the money prices, put simply, amazing fashion, amazing prices," he said.
PRIMARK HISTORY
Primark was founded 47 years ago in Dublin. With two stores currently open - in Boston's Downtown Crossing and Pennsylvania's King of Prussia Mall - Primark expects to launch in six U.S. locations this year.
Primark touts itself as one of the largest clothing retailers in Europe. It has 299 stores and approximately 60,000 permanent employees in the United Kingdom, Republic of Ireland, Spain, Portugal, Germany, the Netherlands, Belgium, Austria, France and the United States.
STATEN ISLAND MALL STORE
The global retailer will be taking over the second floor of Sears in the Mall.
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