Primark has opened its second-largest store in Madrid, in the heart of its rival fashion retailer Zara’s territory.
The low-cost clothes retailer, owned by Associated British Foods, has opened 41 stores in Spain since 2006 and believes Madrid is the cornerstone of the country’s market.
The mega-store is providing 573 jobs with staff manning 131 cash tills and 91 changing rooms on the city’s Gran Via. Primark’s headquarters in Spain, where it has 6 per cent of the market, will be housed in the top three floors of the new shop.
The chain’s largest store was opened in Manchester in May 2013 and covers 155,000 sq ft over three floors.
Demand for Primark has put pressure on Inditex, the owner of Zara and its cheaper sister-store Lefties. However, analysts say that smaller retailers are those threatened by Primark’s increased presence.
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Jamie Merriman, an analyst with Bernstein, said: “Spain is very interesting, given that it is Inditex’s home turf, but so far there has been room for both retailers and we’re seeing continued consolidation. There is a surprising number of small retailers that are losing out.”
Carlos Hernandez, a Madrid-based retail consultant, said: “Being on Gran Via and in such a large space is obviously a symbolic step for Primark. It’s the icing on the cake for the new king of low-cost clothing retailing in Spain.”