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PENNEYS IS A household name in Ireland. Barely a day goes by when you don’t ask someone where they got their new shirt or trousers, only to hear: “Penneys, just €11.”
While the retailer is best known around the world as Primark, it will always be Penneys to us.
The global domination of the retail world came from humble beginnings: the conglomerate started on Mary Street in Dublin city centre in 1969.
Now, 46 years later, the retailer employs over 57,000 people and operates over 287 stores around the world.
This autumn the store is taking a giant leap and opening its first store in the US in Downtown Crossing in Boston, followed by another shop in New York.
Penneys currently employs more than 5,000 people in its Irish stores, and it was announced this week that a new store is also on the way for Liffey Valley, where up to 280 jobs will be created.
So, where did it all begin?
In 1969, Dublin-born retailer Arthur Ryan opened the first Penneys store in Ireland on behalf of the Weston family, which had been in the retail business for years.
The late Garfield Weston, whose descendants are the controlling shareholders in Primark’s parent company Associated British Foods (ABF), hired Ryan to set up a discount clothing chain. He had previously worked for Dunnes Stores.
Speaking at a business awards ceremony in 2011 about the early days, Ryan said he remembered his first day well.
He recalled standing in the doorway of the Mary Street store on the first Saturday it opened with Galen and Hilary Weston.
He described himself as an innocent southsider on the northside, who was left bemused at how people from the area were taking part in a full football match on the street outside the shop.
People told him he was crazy to set up the shop there at the time.
“There were no customers,” said Ryan. “We built the business and got it going.”
Speaking about the Weston family, he said Ireland owed them a lot.
“They put money into this country when it wasn’t a place to go.”
Ryan said he first got a signal things were picking up for Penneys when a busker stood outside the store.
“Buskers don’t stand outside empty stores.”
He said he knew that meant footfall.
He said he still had an emotional attachment to the Mary Street store, where it all began, and also the first store they opened in the UK in Derby.
Ryan also described how he fought to get Mary Street pedestrianised.
At an event, he got talking to the Dublin city manager of the time about plans to pedestrianise Henry Street. He asked what was happening where his store was located on Mary Street, only to be told that that wouldn’t be touched.
Instead, he got in touch with nearby Marks and Spencers, and between them, they paid to pedestrianise Mary Street themselves.
Ryan, now in his 80s, relinquished his chief executive duties in 2009 after reigning over the retail giant for 40 years. He stayed on as chairman, and still holds the role to this day.
The Irish Independent reported this year that Ryan has amassed a €8.3 million share fortune in the chain’s owner, Associated British Foods (ABF).
Why is it called Penneys in Ireland and Primark in the UK?
In 1973, the first store opened in Derby in the UK. The UK now has over 164 Primark stores in total.
The name could not travel to Britain though as the American retailer JC Penney had the right to use the name in the region.
Primark was the name born from that and since then all stores opened around the world have adopted it.
Penneys has built up its worldwide success by offering customers up-to-the-minute fashions at value-for-money prices.
While it began in fashion, its range now includes lingerie, childrenswear, menswear, footwear, accessories, hosiery and homeware, as well as beauty products and more recently beauty treatments.
So why do people love it?
‘Thanks Penneys’ is a commonly heard saying, so what makes it so popular?
The company says it focuses on a target audience of people under 35, aiming to offer ‘amazing fashion, amazing prices’.
Even our Taoiseach Enda Kenny seems to have soft spot for the company. Here he is opening the new Primark store in Germany:
Fashion blogger Becky Johnston of Pink Elephant Blog said Penneys has really upped its game over the past couple of years.
Johnston said their “credible seasonal lines allowing financially challenged fashionistas to invest in seasonal trends without making too much of a dent to their wallet”.
Yes, there is always the likelihood that four other people in a bar will be wearing the same ditsy-print tea dress, but for a tenner most people are willing to take their chances! It’s nice to keep your cash to invest in more classic pieces that will go the distance, while still keeping your wardrobe up to date.
Fashion blogger Michelle Ross of Needsnotwants blog agrees the key to Penneys popularity is affordability.
What makes them so popular is it is affordable fashion that is on trend with the rest of the high street stores. You can get the same looks, for a lower price and you can recreate the looks from the catwalk that would usually cost you a lot more.
She said Penneys brand knows what it is doing and what the people want.
Johnston said Penneys has tapped into other fashion items people are looking for recently.
It’s great that having made their mark in trend based seasonal lines that Penneys have now also rolled out a fashion forward fitness range which is receiving a great reaction from bloggers and media alike; praising not only the edgy style, but also the fact that functional fabrics have been used which cover the practical element of working out.
Ross said Penneys is very popular with fashion bloggers as the brand has really invested in its social media strategy, having one of biggest followings of any of the high street stores.
“Penneys have made huge strides in terms of blogger and public engagement using their Primania hashtag, encouraging bloggers and the public to create real-time self-styled lookbooks of their favourite Penney’s pieces featuring themselves alongside the Primania hashtag, ” said Johnston, adding:
Social media plays such a huge part in brand perception these days that it’s nice to see an Irish retail giant holding their own in the blogosphere.
Ethics
However, the brand has not been without controversy. Questions have been raised frequently about the ethics involved in producing high volumes of clothes which are sold at a low cost.
The collapse of the eight-storey Rana Plaza in Bangladesh in 2013 killed more than 400 people. The company confirmed one of its suppliers was located in the building.
Primark is believed to have donated over €10 million in compensation, saying in a statement:
This will include the provision of long-term aid for children who have lost parents, financial aid for those injured and payments to the families of the deceased.
It said it noted the supplier shared the building with other retailers and has urged these other retailers to come forward and offer assistance also.
The company has also defended itself, saying that it has been a member of the Ethical Trading Initiative since 2006, and has been ranked as ‘Leader’ by the ETI since 2011 which puts it in the top 5% of ETI member brands.
How much money is it making?
Last year, Primark won company of the year at the Business and Finance Awards – and based on the figures, it looks like it was with good cause.
Penneys is the jewel of its owners eye, with Associated British Foods reporting sales were up 15% over the 16 weeks to the start of January, compared to the same time a year earlier.
Sales at Primark are expected to be 16% ahead of last year at constant currency driven by an 11% increase in retail
As a result of the weakening of the euro against sterling, total Primark sales are expected to be 12% ahead of the same period last year at actual exchange rates.
The Primark retail business is the biggest earner in Associated British Foods’ stable and was the only major wing of the £24.6 billion (€31.8 billion) company to increase sales last financial year.
It was doing pretty well in the early days too. In May 1979, Managing Director of Primark Ireland even wrote to the Taoiseach to bring to his “personal attention” to efforts it was making for the Irish economy.
What does it take to work there?
Ryan said a number of years ago Penneys/Primark want hard workers.
He said the company wanted “committed people” who would put in the hours needed:
If you want to be home for your tea, don’t call.
The Penneys head office is still based above the original Mary Street store, and has only just recently been given a makeover. There is another head office in Reading in the UK.
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Only in Penneys would you see someone buying pajamas while wearing pajamas……
Selling courtroom clothes since 1969…….
Penny’s and Ryanair – Ireland’s real success stories.
“Penneys. Fashion doesn’t last forever, so why should your clothes?”
I want to be home for me tea.
Gotta love penny’s!
Penny’s what?
Clothes? Your pedantic correction has tripped you up there.
well it would have if the brand were called penny, damn it.
Built on slave labour like most clothes retailers
Shhhh…. You’re not supposed to bring that up. It makes shoppers sad
I clicked on this article to say the same thing. Lots of quotes, but none from the people who make the clothes. As long as us westerners get cheap clothes that’s all that counts, right!?
Feel free to buy more expensive clothes. They all come from the same factories.
Guys, so actually you shouldn’t be shopping at all these days – as virtually anything is now made in developing countries. Even if not final product then definitely some components of it. From clothes through electronics to airplanes…
Plenty of clothes are manufactured in the developed world, or from ethical factories in the developing world. Have to do your research and shop online if you wish to purchase these though.
I really can’t understand why people/the media don’t and won’t discuss this. We got an insight into in in April 2013 when the factory where Penneys’ clothes were made collapsed in India, but hasn’t been discussed since in mainstream media since. I also find that on a personal level people get very defensive when there is any mention of workers’ conditions. Is this really such a taboo subject just so we can buy a €4 handbag?
Jumbo did you read the article, Penneys is the ethical trade member and when factory collapsed in Bangladesh it was first and one of very few businesses who acknowledged the responsibility while dozen more expensive brands were producing in same building and wasn’t interested in participating / looks like tried to steer away from it.
http://en.m.wikipedia.org/wiki/2013_Savar_building_collapse
Acknowledging responsibility is not the same being ethical, neither is membership of ETI a guarantee of ethical trade:
http://www.independent.co.uk/news/uk/this-britain/ethical-trading-agreement-has-had-little-impact-420677.html
Has anyone asked where BT buy their branded goods?
Don’t believe everything you read on Wikipedia
Wonder do I have a share in the place seeming the missus is always in there
Their name makes no cents these days.
Aimed at a demographic of trendy under 35s…really? What is one to do in two years time? When did time pass me by?!
Demographic schmemographic! I still shop in there, despite being more than a few years past the 35 limit :-)
Heard a story about a foreigner who for a long time thought that Penneys was thank you. Whenever they were in company and somebody remarked how nice an article of clothing that a person was wearing the response was always Penneys so he thought it was thank you.
People have to stop referring to Pennys as Irish, their not, they are owned by ABF , a British multinational. Based in the UK
They’re not or they are not.
If we can’t call Pennys Irish then the British can’t call Land Rover, Mini, Boots Pharmacies, Cadburys, Asda, McVities or Harrods British as all those companies have been acquired by non British groups. Also Pennys still have their headquarters in Dublin.
Wish we had pennys when my children were small. But i love going to the girly section with my little grandaughter. And they have lovely home wear now.
Its a telling quote ” if you want to be home for you tea don’t apply” – this, in a country where there are workers rights & supposed protection . Yet we are supposed to believe they are pillars of excellence in third world countries – with this attitude?
Families & values howareya.
Not to mention that the majority of their workers are young women & mothers.
All them billions there making and them an irish company,didn’t hear of them helping out the bail out crisis
All the billions dear making or all the billions dare making. It is so confusing.
I should have written ‘all tim billions or all dim billions’.
Unlike all those other Irish companies who all clubbed together to help the state out.
One opened recently in Fuengirola they love it
Pennys “primark” have started opening shops in Holland shocking to see how busy it gets! they will open a new shop in Amsterdam end of 2015 everyone’s already talking about it.
Nice bit of advertorial
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