Primark bets €45 million on Portugal

Nelson Ribeiro, Head of Sales for Primark Portugal and Spain, has confirmed a €45 million investment to open four new stores and expand one existing location across Portugal, bringing the brand's national network to 18 stores by summer 2027.

The first of the new openings will be at Alegro Setúbal. Further stores will follow at GaiaShopping in Vila Nova de Gaia and at Forum Castelo Branco. The fourth opening is the most significant: a flagship on Rua de Santa Catarina in Porto, occupying the Palladium building, a five-storey landmark originally built in 1914 as the Grandes Armazéns Nascimento. It will be Primark's first street store in Portugal.

Primark sells clothing, accessories, footwear, beauty products, and homewares exclusively through physical stores at price points estimated to sit roughly 40% below the high-street average. It competes directly with H&M and Zara (Inditex) on the high street, and faces growing pressure from Shein and Temu in the European online segment. Its deliberate refusal to trade online eliminates fulfilment costs those competitors must absorb, allowing it to sustain margins at volume without traditional advertising spend.

"Portugal is an important market for Primark, and this investment reflects our confidence here. Over the last 17 years, we have built a strong presence and developed a loyal customer base, who enjoy our mix of timeless essentials and on-trend fashion. As we continue to grow in the market our focus is on expanding our footprint and reaching new customers through new stores. The opening of our first high street store in Porto is a key milestone, allowing us to bring the Primark experience to the heart of the city in an iconic building." — Nelson Ribeiro, Head of Sales Primark Portugal and Spain.

The €45 million tranche is the Portuguese portion of a broader Iberian programme totalling over €85 million, which also covers a new Spanish store and 11 refurbishments of existing Spanish locations. It follows a €40 million wave announced in June 2024, which produced new stores in Montijo, Guimarães, Viseu, and Covilhã, with a Covilhã opening still planned for 2026. The combined investment across the two cycles now exceeds €85 million in Portugal and Spain combined.

The timing carries a structural dimension beyond retail growth. Primark's owner, Associated British Foods, has announced plans to spin Primark off as an independent FTSE-listed entity by the end of 2027. The retailer operates 486 stores across 19 markets with approximately £9.5 billion in annual revenue, and overseas expansion has become a central part of the case it must make to prospective public market investors. The Portuguese 18-store network, including the Porto flagship, will be live before that listing closes.

"This is a landmark moment for Primark in Iberia. This investment reflects our confidence in the region and our long-term commitment to both Spain and Portugal." — Carlos Inácio, Director of Sales of Primark Iberia.

The expansion plan is projected to create around 300 jobs across the new and expanded locations.

The Porto flagship on Rua de Santa Catarina is the deal's proof-of-concept asset: a century-old city landmark repurposed as the anchor of a retail equity story Primark will soon have to sell on its own.