Uniqlo delivered double-digit growth at the end of 2025, outpacing Primark, as shoppers opted for quality over rock-bottom prices.

More companies are looking to shed underperforming assets or overhaul their business structures to strengthen their businesses in an uncertain environment. Yum, Starbucks, and AB Foods are among those either looking to sell or restructure to better position themselves for growth. With the global economy on increasingly shaky footing due to geopolitical tensions and trade disputes, it’s no surprise that companies are moving to mitigate risk either by slimming down or seeking partners to help extract greater strategic value from their assets.

As Primark celebrates its 10-year anniversary in the US, the European retail giant navigates the challenges of building brand awareness in a competitive American market while staying true to its core value proposition that made it a cultural institution in the UK and Ireland.

In this podcast episode, we discuss how Primark’s US and UK customers see the brand differently, what’s kept the retailer relevant as price pressures have intensified competition, and why its famously store-first strategy is working so well. Listen to the discussion with Vice President of Content and guest host, Suzy Davidkhanian, Senior Analyst, Carina Perkins, and Head of US Marketing for Primark, Rene Federico.

Weak consumer sentiment in Europe is hurting fast fashion sales, with both Primark and Zara owner Inditex reporting slowdowns. The challenging environment in Europe increasingly favors Shein and Temu, whose ability to undercut competitors on price and deliver a steady stream of trendy products positions them to take more fast fashion share. But as in the US, both companies could fall afoul of geopolitical tensions as European governments raise concerns about Chinese overcapacity—and President Trump pushes the EU to implement 100% tariffs on China imports.

The UK retail landscape looks increasingly bleak: Sainsbury’s and Primark owner AB Foods add to the chorus of retailers bracing for a slowdown.

GenAI and social are set to heavily influence the UK commerce and advertising landscape in 2025, while thrifty consumer behaviors persist and video viewing shifts to mostly digital.

The UK budget will eat into retailers’ bottom lines: Primark owner Associated British Foods expects its national insurance bill to rise by “tens of millions” of pounds.

Inditex bounces back after a rainy summer dented sales growth: The Zara parent reported a strong start to Q3 as shoppers responded positively to its product assortment.

UK retail sales are performing better than expected, with consumers still spending despite high inflation—but ecommerce will lose further share this year as shoppers continue returning to stores and cut nonessential spending.

Sales fulfilled via click and collect are growing faster than total ecommerce sales in the UK as cash-strapped consumers avoid delivery costs and retailers race to make their services faster, cheaper, and more efficient.

As apparel retailers grapple with consumers’ pullback in discretionary spending, a few common themes are emerging. Some are refocusing on core consumers while others are experimenting with cutting-edge technologies.

Retailers struggle to find a balance between growth and sustainability: Efforts to reduce environmental footprints often run counter to the desire to grow sales.

Inflation in the UK is easing but remains near a 40-year high. That’s tamping down consumer spending across all categories—with total retail sales set to grow by just 1.7% in 2023, versus a pre-pandemic growth rate of around 4%.

UK inflation eased in November: However, there is no shortage of challenges facing UK merchants and consumers, including a recent rail strike.

Economic conditions will have a huge effect on the retail, media, and marketing industries in 2023. For companies to succeed, the cost-conscious consumer must be front and center.

The retail landscape in Europe looks bleak: Retail sales in Europe fell at the highest rate since July 2021. That’s a sharp contrast to the US, where consumers keep spending.

Physical stores remain a priority for retailers: Off-price, fast-fashion, and digitally native brands are ramping up expansion to capitalize on renewed demand for in-store shopping.

Inflation eased slightly in July, but consumers still feel the pinch: Gas prices are falling, but steadily rising food prices are eroding shoppers’ buying power.

Consumers want to buy sustainable products: But inflation is driving them to trade down, which may slow sales of products made from recycled materials as well as organic foods.