By Tapan Panchal
LONDON--Two of U.K.'s leading clothing chains, Primark and
SuperGroup, announced plans to expand their global reach to grow
earnings.
The parent company of Primark said Thursday the retailer will
enter Italy, its tenth European market, by summer of next year.
Associated British Foods PLC (ABF.LN) said the fast fashion
clothing chain will continue with its European expansion by opening
up to three stores in the country. The first store is schedule to
open in a new shopping centre in Arese, northwest of Milan, in the
summer of 2016.
Primark is also in advanced preparations to enter the U.S.
market this September by opening a store in Boston, Massachusetts,
AB Foods said. The chain first announced its U.S. entry in April
2014.
For 16 weeks to June 30, Primark recorded flat same-store sales
growth against very strong comparatives. It currently generates
more than half of AB Foods' annual profits.
"All-in-all, Primark remains a firm retail business with lots of
potential for international expansion and a winning fashion formula
that sees its cut-price clothing warmly received in all new
territories," Anusha Couttigane, a consultant at retail research
agency Conlumino said.
Barclays analysts said that the Italian entry serves as a
reminder of Primark's roll-out potential.
Separately, clothing retailer SuperGroup PLC (SGP.LN) announced
plans to enter the Chinese market.
SuperGroup, the owner of the Superdry clothing brand, expects
first stores in China to open in late spring or early summer of
next year. It has inked a joint venture with Chinese clothing
company Trendy International Group to enter the market.
"The [Chinese] market is due to overtake the U.S. as the largest
apparel market in the world and we're seeing Chinese consumer
tastes changing to really focus on Western brands so we really
think SuperGroup and the Superdry brand fit well into that market,"
SuperGroup Chief Executive Euan Sutherland said on a conference
call.
AB Foods shares had added 6% to trade at 3,111 pence apiece,
while SuperGroup shares were up 5.3% at 1,307 pence in early
afternoon trading in London.
Jana Simmons contributed to the article.
Write to Tapan Panchal at tapan.panchal@wsj.com
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