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Cheaper Irish clothes retailer triumphs American rivals

A customer looks at clothes on display at a store of a major second hand clothes importer in Hungary, in Budapest November 5, 2014. The global financial crisis hit hard in central and eastern Europe, but one industry has thrived: second-hand clothing stores. While in western Europe the squeeze on household finances prompted many consumers to turn to discount retailers like Primark, their peers further east - where wages are significantly lower - have shifted to the used clothing sector. Second-hand clothes retailers in Hungary, Poland, Bulgaria and Croatia have grown rapidly and, as the pace of income convergence between the West and Eastern Europe slows, they are investing millions of euros to expand their businesses further. To match story EASTEUROPE-CLOTHING/ REUTERS/Bernadett Szabo (HUNGARY - Tags: BUSINESS TEXTILE EMPLOYMENT)

London: The Irish retailer Primark, owned by Associated British Foods (ABF), has ventured into offering a new and even faster kind of fast fashion, which encourages consumers to buy heaps of items in lesser prices.

The brand opened its first store in Spain in 2006, now sells more clothes than any other retailer in Britain. It’s success marks with its stores across the continent including Netherlands, Portugal, Germany, Belgium, Austria and France.

Between 2009 and 2014, Primark’s sale witnessed a gross increase by 150 percent, making it a new force to launch its boldest invasion in America on the 10th of september. Boston will be first to get a Primark.

Offering irresistible offers and low prices, Primark has given tough competition to famous American brands, such as Gap, J.Crew and Abercrombie & Fitch.

With its bland styles and frequent sales promotions, the company’s suffered an 8 percent fall in sales over the past decade.

Facing serious threat by Primark, two American retailers, T.J. Maxx and Ross, sell discounted items bearing designer labels. Two European retailers, H&M and Zara, sell own-label clothes in the latest styles, constantly updating their ranges.

According to a retail consultant Maureen Hinton, Primark comes with a range of winning combination, cool clothes, attractive stores and rock-bottom prices.

John Bason, ABF’s finance director in an interview said, ” Primark achieves its low prices thanks to sleek logistics, a meagre marketing budget and its scale, which helps win bargains from suppliers.” “It is also benefiting from the “Instagram effect.” (ANI)