Fashion retailer Primark is aiming for renewed growth in Germany with smaller, targeted locations, as reported by Reuters citing sales director for Germany and Austria, Sandra Luxem-Bremen.   

The news comes as the Associated British Foods’ business unit opened its first new store in five years on 19 November 2025, with plans to open two further sites. 

Primark’s German expansion seeks to counter falling sales in the country, which contributed to a 1% drop in Primark’s Northern Europe revenue in the financial year to 13 September. 

The business has been investing in product development, pricing and digital engagement with customers to respond to subdued consumer spending and intense competition across key European markets such as France, Italy and Germany. 

In Germany, the company now intends to operate smaller outlets tailored to local demand.  

Primark expects these more compact stores to support higher efficiency and profitability in the market. 

Over recent years, the retailer has closed five German branches and plans one further closure in the first quarter of next year.  

The retrenchment has come amid rising pressure from online rivals such as Shein and Temu. 

Luxem-Bremen stated that some past sites were oversized or too close together, while other regions lacked any brand presence.  

Primark opened Great Britain’s first standalone Home store at Trafford Palazzo in Manchester, England in September.  

The 12,000ft² store occupies two floors and provides home decor items such as bedding and throws along with decorative pieces and essential storage solutions. 

The Trafford Palazzo store added to Primark’s Greater Manchester presence and followed the launch of the standalone Primark Home concept in Belfast in March 2025.