Primark Enters Mexico Through Liverpool Franchise Deal

Summary: Primark’s planned entry into Mexico through a franchise partnership with El Puerto de Liverpool expands the Irish value-fashion retailer’s international footprint while giving Liverpool access to a globally established apparel brand. The agreement comes amid cautious Mexican consumer spending and uneven retail performance, making the rollout’s location, scale and integration with Liverpool’s existing retail and credit ecosystem key factors in determining its growth potential. 

Primark will enter Mexico through a franchise partnership with El Puerto de Liverpool, bringing one of Europe’s largest value-fashion retailers to the country as Mexican consumers face more cautious spending and retailers compete to expand their offerings. 

The agreement, announced Sept. 10 through the Mexican Stock Exchange, establishes the framework for Primark’s expansion but does not yet specify the cities, number of stores or opening dates.

The companies will jointly determine the locations, pace and scope of the rollout as part of the planning process. The agreement marks Primark’s latest move to expand through franchise partnerships beyond its company-operated markets.

Founded in Ireland in 1969, Primark now operates more than 500 stores across 19 markets. The chain is owned by Associated British Foods (ABF), the international group whose businesses also span food, ingredients, sugar and agriculture.

ABF has already used franchising to extend Primark’s geographic reach. The retailer currently has three franchised stores in Dubai and one in Kuwait, while an expanded agreement with Alshaya Group will bring the brand to Saudi Arabia, with the first store expected to open in spring 2027. 

Primark Expands Its International Retail Footprint

The Mexican agreement comes as Primark continues to build its international presence while maintaining stores as the core of its retail model. Its expansion strategy increasingly combines company-operated locations with selected franchise partnerships, allowing the brand to enter markets through established local operators.

Primark generated approximately US$12.86 billion in revenue in fiscal 2025, with adjusted operating profit of about US$1.53 billion. Its adjusted operating margin was 11.9%, while its retail estate covered approximately 1.81 million m2.

For fiscal 2026, ending Sept. 12, ABF expects Primark sales to increase by about 2%, with new stores and franchise operations contributing approximately 5% to growth. The company also expects continued expansion in the United States, where Primark operates 47 stores and fourth-quarter sales are projected to be 11% above the comparable period.

The figures provide context for the Mexican expansion: Primark is entering the country as part of a broader international strategy rather than as an isolated market launch. 

Liverpool Adds Primark Amid Mixed Consumer Demand

For Liverpool, the partnership expands its retail portfolio at a time when consumer demand across its formats has been uneven. The Mexican retailer operates Liverpool and Suburbia department and discount stores, as well as 173 specialty boutiques and 303 shopping centers.

The company had more than 8.8 million active cardholders and a workforce of more than 83,000 employees. Its proprietary credit ecosystem remains an important component of its retail model, with card transactions accounting for a substantial portion of sales.

Liverpool’s latest financial results show both the opportunities and pressures facing the Mexican retail market. In 2Q2026, the company reported a 55.3% year-over-year increase in net profit to MX$5.12 billion, despite mixed consumer demand. The improvement was supported largely by a sharp reduction in financial expenses, reported MBN. 

At the operating level, however, results differed between formats. Liverpool department stores recorded a 3.1% year-over-year increase in sales to MX$43.70 billion, while Suburbia sales declined 6.6% to MX$5.39 billion.

The company said consumer behavior remained cautious amid a broader economic slowdown. Department store sales also reflected changing spending patterns, with stronger demand for televisions, screens and sporting goods during the World Cup offset by weaker performance in categories such as apparel. 

Credit Growth Supports Liverpool’s Retail Ecosystem

The performance of Liverpool’s financial-services business adds another dimension to its partnership with Primark. As the company expands its merchandise offering, its credit operation continues to provide a mechanism for customer acquisition and spending across its retail formats.

Liverpool added 644,000 net new credit cards over the 12 months, taking the combined active portfolio for Liverpool and Suburbia to 8.84 million, up from 8.20 million a year earlier. Liverpool added 373,000 cards, while Suburbia contributed 271,000.

The expansion helped increase the company’s gross credit portfolio by 9.5% year over year to MX$75.25 billion. At the same time, credit risk increased, with the 90-day nonperforming loan ratio rising to 4.7% from 4% in the previous year.

For Primark, the partnership provides access to Liverpool’s established retail infrastructure, customer base and market knowledge. For Liverpool, the addition of a globally recognized value-fashion brand could broaden its exposure to consumers seeking affordable apparel and everyday products.

Primark’s proposition centers on fashion, basic apparel and everyday merchandise, with physical stores remaining central to its strategy. The retailer has also expanded digital capabilities through services such as Click & Collect and its mobile application.

The Mexican agreement therefore creates a potential new growth channel for both companies, but the scale of the opportunity will depend on the rollout that Liverpool and Primark establish in the coming months.

Neither company has yet announced the first Mexican locations, store count or opening schedule. Those decisions will determine the initial footprint of Primark in Mexico and the extent to which the franchise becomes a larger component of Liverpool’s retail strategy.