Primark predicted to take over M & S's market share in the years to come.

Primark owner Associated British Foods says its sale volumes have now overtaken arch rival Zara in its competitor’s Spanish home market.The budget fashion chain, which said in a trading update that underlying annual sales should top4.5 per cent, said Spanish trading has been exceptional, driven by low prices. Primark, which has278 stores selling the type of affordable fashions being modeled on the right, is likely to see full-year sales rise17 per cent ahead of last year following a big international expansion drive.

It also announced further plans to grow on the east coast of America following an earlier announcement that it would enter the market in Boston next year. It hopes to have ten outlets in a range of different shopping destinations, from indoor centers to department style stores, by2016.

Analysts suggest that if Primark continues to grow at this rate it could follow Next in overtaking Marks & Spencer in Britain. Independent analyst Nick Bubb said: ‘The way things are going, M&S is soon going to be overtaken by Primark, with Primark set to make over £600m operating profits on sales of £5BN in the year about to finish.’ M&S made pre-tax profit of £622.9m in its last financial year.

Considering the facts, it is clear Primark is a threat to M&S for the coming years if M&S do not take set & execute some strategic moves to offset this threat.