Primark chooses Mexico for its first entry into Latin America

Primark is preparing to enter Latin America for the first time through an agreement with Mexican retail group El Puerto de Liverpool, making Mexico the next market in the Irish company’s international expansion.

The retailer, part of Associated British Foods, will enter the country under a franchise model. The two companies will now determine the locations of the first stores, their opening schedule and the scale of the rollout.

Financial terms and investment figures were not disclosed. The partners also stopped short of announcing how many stores Primark plans to open during the initial phase.

The move gives Primark access to Latin America’s second-largest economy through a local operator with nationwide retail, logistics and digital infrastructure. For Liverpool, the alliance adds another international brand to a portfolio that already spans department stores, discount retail, specialised boutiques and shopping centres.

Local partner provides national reach

El Puerto de Liverpool operates 125 Liverpool department stores, 72 Liverpool Express locations and 196 Suburbia stores. It also manages 173 specialised boutiques and 30 shopping centres across Mexico.

That network provides Primark with knowledge of local consumers, commercial property, distribution and store operations as it enters a market of nearly 130 million people.

Primark chief executive Eoin Tonge said the partnership would combine the company’s international retail experience with Liverpool’s understanding of the Mexican market. The group expects its proposition, based on fashion and essential products at accessible prices, to attract local consumers.

Liverpool chief executive Enrique Güijosa said the companies would work to adapt Primark’s retail model to the Mexican market and establish a platform for long-term growth.

The partnership also reduces the operational and financial risks associated with entering a new region. Rather than building an independent structure from the ground up, Primark will rely on an established group with local supply-chain capacity, real-estate experience and relationships with Mexican consumers.

A physical-store model enters a competitive market

Founded in Dublin in 1969, Primark operates more than 500 stores across 19 markets. Its business remains centred on large physical stores, high sales volumes and limited reliance on conventional e-commerce.

Mexico will place the company in direct competition with international groups including Inditex, through Zara, Stradivarius and Lefties, as well as H&M, C&A, Forever 21 and online-focused platforms such as Shein.

The Mexican apparel market combines an extensive shopping-centre network with a growing digital retail sector. That environment creates opportunities for international brands but also increases pressure on prices, inventory management and the speed at which collections reach consumers.

Primark’s arrival could also strengthen Liverpool’s presence in the lower-priced fashion segment. The Mexican group already participates in that part of the market through Suburbia, which it acquired from Walmart de México in 2017.

Mexico becomes Primark’s gateway to Latin America

Mexico offers Primark a large domestic consumer market and a developed retail infrastructure, while providing a potential base from which to assess further expansion in Latin America.

The choice of a franchise arrangement follows a broader trend among international retailers entering markets where regulatory requirements, consumer behaviour and property conditions differ from their established operations.

However, the final scope of Primark’s Mexican business will depend on decisions that have yet to be announced. The partners must still define store formats, locations, opening dates and the pace at which the network will grow.

For now, the agreement marks Primark’s first formal step into Latin America and adds a major European fashion retailer to Mexico’s increasingly competitive apparel market.