Primark, the Irish fashion retail giant also known as Penneys, has invested over €30m in its European expansion this month as it prepares to enter its 17th market in Hungary.

The fashion retailer, launched on Dublin’s Mary Street in 1969 by the late Arthur Ryan, has opened stores in Madrid, Spain, and Turin, Italy, this month and is about to open its first store in Budapest, Hungary. The three new stores, representing an investment of around €30m, will create around 600 new jobs at Primark, which has around 455 stores globally in markets including the UK and US.

In an exclusive interview, Stephen Mullen, Primark’s retail director for Iberia, Italy, Central and Eastern Europe, and Benelux, said the company had ambitions to open several stores across the continent this year.

By the end of 2026, Primark aims to have 530 stores globally

Further openings will take place in Italy, Czechia, Romania, Portugal, and Poland this year. By the end of 2026, Primark aims to have 530 stores globally.

Co Meath-born Mullen, who has worked at Primark for over 38 years and headed up the Spanish expansion at the direction of co-founder Ryan, said the European expansion was performing well.

“There is much more to come from that market – I am very excited about it,” he said.

Primark delivered a strong performance in the first half of its latest financial year, with sales up 7.5pc globally.

Sales of womenswear and menswear grew well, as did health and beauty ranges. Equally, digital engagement has continued to support Primark’s sales growth.

Mullen said Spain was a key market for Primark, with the company operating 63 stores across the country

In Europe (excluding the UK) sales grew by 7.9pc. The company's well-received product ranges, good footfall, strong performance in new stores, and the rollout of Primark’s enhanced customer website contributed to its performance.

Mullen said Spain was a key market for Primark, with the company operating 63 stores across the country and employing over 10,000 people. He added that the business plans to invest €100m in the Spanish market, opening and refurbishing stores between April 2023 and the end of this year.

“It is about enhancing the proposition for the customer,” he said, noting Primark was implementing food and beauty offerings in the Spanish market. “It is important that the customer comes in and finds affordable fashion in a fantastic environment and also gets the experience.”

Analysts have questioned whether ABF should spin off Primark into a separate listed entity for many years due to its success

Competition across the continent in fashion retail is fierce. Mullen says innovation has positioned Primark well, from enhancing the experiential offering in-store to its clothing designs.

“It’s about staying relevant. That is the big secret for everybody,” he said.

Primark is part of UK-listed Associated British Foods. It places the affordable fashion retailer in a group operating in various sectors, including producing sugar and baker's yeast.

Investment analysts have questioned whether ABF should spin off Primark into a separate listed entity for many years due to its success.

“I have been hearing that since I was a boy,” said Mullen. “It is speculation, and I couldn’t comment on it. I am not privy to that sort of information.”

Reporting on:independent.ie