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Primark’s flagship store in Madrid celebrates 1st anniversary
Primark’s largest store in Spain has celebrated its first anniversary. Located in the heart of Madrid on Gran Via, the store is the Irish retailer’s second most profitable location in the world.
Since the launch of the store at 32 Gran Via in October 2015, retail rents in the area have risen by 4.5% to 5%, according to Íñigo Gutiérrez, director of Mislocales.es. “The neighbourhood was already showing a positive trend and has now positioned itself as the prime area of Madrid. Some rents have grown to over 230 euros per square meter,” said Gutierrez.
Primark’s store on Gran Via has become the brand’s most important store in Spain which is also the second largest market for Primark after Ireland. Spreading over 12,400 sq mt of space across five floors, the store has become a landmark in the city. Visited by both locals and tourists, the store has also attracted the attention of pickpockets. According to the police, crime reports rose to almost 300 in June.
Increasing footfall is also attracting new retailers to the area with some of the existing tenants such as H&M upsizing their units. The Plaza de Callao is Spain’s answer to London’s Picadilly Circus, says Gutierrez.
Primark is not the first retailer to open a flagship store on Gran Via, but the store opening represents a significant shift in the retail scene, adds Gutierrez. The decision to open a five-storey mega store in the heart of Madrid speaks to the importance of having a presence in prime retail venues.
The Irish high street brand entered Spain in 2006. It is currently the most popular fashion label for Spanish customers followed by H&M and Zara, according to Kantar Worldpanel.
Sales in Spanish stores grew by 16% to 920 million euros in financial year 2015, according to ABF’s full year results. Primark has over 40 stores in Spain, with additional stores opening shortly in cities such as Palma de Mallorca, Valencia and Bilbao.
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