Primark – the Irish-based deep discount fast fashion chain that often makes competitors like H&M and Zara look slow and over-priced – announced earlier this month it would be opening what will essentially be its American flagship on Manhattan’s 34th Street in the heart of the Herald Square retail district. Not to mention across the street from Macy’s and within strolling distance of both of those direct competitors.
However, what both Primark and press reports of the news failed to mention was what’s currently in that retail space. Without getting all changing-of-the-guard dramatic, one can’t help to think that when you learn the current tenant is Old Navy. The 54,000-square-foot space served as the de facto flagship for that banner too. But when the retailer signed a new lease with landlord Vornado Realty Trust – which seemingly owns much of the Herald Square neighborhood it accumulated when it once had grand plans for a mega-complex of commercial and retail space since shelved – in 2018 it was only a short-term deal. No doubt Vornado will be getting a bigger monthly check from Primark to make it worth its while to turn over the keys to them.
Primark hasn’t announced an opening date yet but when 34th Street opens it will be its 11th store in New York State and 28th total in the U.S., once it opens in Texas and another unit in Queens. It has over 450 locations in 17 countries and seems to be on an aggressive path to upping that count.
Primark stores, if you haven’t seen one in person, are substantially larger than most competitors’ locations and offer a mix of primarily apparel with a good-sized soft home assortment as well. Prices are generally lower than other fast fashion retailers and the company’s sourcing model seems to allow for significantly faster replenishment as well.
Old Navy, the largest brand in the Gap stable, has seen challenging times recently although more recently the numbers have been more encouraging. Without any hard share of market data, it is believed the entire fast fashion sector has taken at least some of its business.
Where and when Old Navy will reopen in the Herald Square district has not been announced but one can assume it will and while it may not go with as large a footprint it will no doubt want a high-profile location. So, while the changing of the guard might be overstating things, the symbolism of this particular physical space’s changeover just seems too obvious to ignore.
Fast or slow, it’s the way the retailing game is played.
WarrensReport 