Primark invests 12.5 million euros in German market expansion and store optimization

Primark is continuously optimising its store portfolio. The Irish clothing discounter has recently closed several locations in Germany. However, it also has a new store concept in the pipeline, which will be implemented in three new stores. The company is investing a total of 12.5 million euros in these new spaces.

The first German Primark store in five years opens today in the Ostsee Park Rostock shopping centre in Lambrechtshagen. This brings the company's total number of locations in Germany to 28. To mark the opening, Sandra Luxem-Bremen, managing director of Primark Germany and Austria, offered insights into the company's current strategy.

German business profitable again

“The new store symbolises the turning point our company has reached,” said Luxem-Bremen in a statement on Wednesday's opening. “Through a strategic realignment, we are once again closer to our customers' needs and, as a result, are commercially successful.”

Over the past three years, Primark has adjusted its store network and the size of its retail spaces. This resulted in the closure of five stores in Gelsenkirchen; Weiterstadt; Krefeld; Berlin; and Kaiserslautern. The Düsseldorf location is also set to close in early 2026.

The head of Germany cited several reasons for the closures. The stores were often too large, spanned multiple floors and were located too close to each other in some areas. Primark has a corporate responsibility to assess the profitability of each location, which could lead to further closures as well as new openings.

Opening of the new Primark store in Ostsee Park Rostock Credits: Primark

By restructuring its store network, Primark improved its space productivity and achieved higher profitability. Luxem-Bremen confirmed in a press conference that the German business is now profitable again, reflecting on the past year. The focus is now on future growth, which will be further driven by the new store concept. Primark continues to invest in the German market and has not yet completed its transformation.

New store concept with self-checkout and smaller retail spaces

The company is focusing on new stores in regions where it has had little or no presence, such as Rostock in Mecklenburg-Vorpommern. Another location will open in Regensburg on December 3. A store is also planned in Mülheim-Kärlich near Koblenz, though no official opening date has been set. Together, the three stores are expected to create around 150 new jobs. While no further locations are currently planned, Primark is interested in expanding its store portfolio in both city centre and retail park locations.

A new store concept is being launched for the three new stores. It focuses on more compact spaces, averaging around 2,500 square metres and confined to a single ground floor, alongside a locally-focused product range. This single-level layout reduces the need for lifts, escalators and stairs, making the store more accessible. Self-checkout tills will also be integrated for the first time. The product presentation, however, will remain fundamentally unchanged.

Primark store in Ostsee Park Rostock Credits: Primark

The Rostock store covers a retail space of around 2,800 square metres. It offers womenswear; menswear; kidswear; accessories; beauty products; and travel items. As part of its local focus, decorative items are not included in the product range at this location to better meet customer needs.

Primark tailors its product range to each location individually, considering the local retail mix, surrounding commercial activities and specific customer needs. Luxem-Bremen explained that in a rural region, this could mean a focus on basics. In contrast, on Frankfurt's busy Zeil shopping street, customers tend to buy more fashion-forward and business-oriented pieces.

“We have successfully repositioned ourselves,” said Luxem-Bremen. “This applies to our product range and collection, our regional distribution within Germany, and our adaptation to local needs.”

The Rostock location is the first in Germany to be equipped with self-checkout tills. Ten self-service checkouts are available to customers, while only four tills are staffed by sales assistants. This marks a significant reduction from the long checkout counters previously found across multiple floors.

This article was translated to English using an AI tool.

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