Primark’s Gran Vía store in Madrid contributed €83 million to Spain’s GDP in 2024

In 2015, with the reverberations of the early‑2000s economic crisis still being keenly felt in retail, Irish low‑cost fashion brand Primark chose to step out of Spanish shopping centres, its natural habitat until then, and set up shop at 32 Gran Vía in Madrid, in a now century‑old building that originally housed the Madrid-Paris department store (a pioneer of its kind in Spain). For months, the opening drew queues of customers waiting to enter the store. A decade on, Primark is assessing the impact of this store on the city and the economy.

This Tuesday, October 21, at the building that serves as the chain’s flagship store in Spain and also houses its offices, Primark presented a report titled “10 years in the heart of Madrid,” prepared by the economic consultancy Afi. According to its analysis, in 2024 the Gran Vía store, which spans 12,500 square metres, achieved a record impact: it contributed 83 million euros to national GDP (including, among other factors, its direct operations and supply chain activity) and generated a further 42 million euros in taxes and social contributions. In addition, this flagship store records more than five million transactions annually and in 2024 directly employed 1,060 people.

Beyond 32 Gran Vía, Primark’s contribution translates into 0.4 indirect and induced jobs in the Madrid labour market for every direct job. And, for every euro of value the brand generates through its operations, other businesses and sectors generate an additional 0.5 euros for the Madrid economy, according to figures from the Afi report.

The consultancy also points to a “halo effect” along the capital’s commercial hub, Gran Vía. Since the opening of Primark, that is, between 2015 and 2025, the number of retailers has risen from 101 to 186, and restaurants from 46 to 90.

“Ten years ago, when we decided to open here, we wanted to make a difference, to change the perception of the brand and elevate it. We wanted to convey a message to the Spanish consumer and we have succeeded, as well as helping to boost the dynamism of Gran Vía. This store, which leads Iberia by volume and transactions, has changed us as a brand,” said Carlos Inácio, managing director of Primark Iberia, at the presentation of the report.

The key figures of this analysis were revealed during a roundtable discussion, in which Diego Vizcaíno, Managing Partner of Afi, also took part. He stressed that the opening of this store was “a challenge for the city as a whole and for the companies that work with Primark”. “It was a challenge for the evolution of Madrid’s retail fabric; competitors had to raise their game, as did suppliers,” added the executive.

This Gran Vía store never sleeps: it operates 24 hours a day, seven days a week, although not all of those hours are trading hours. “For the night shift workers, who have to replenish the merchandise, it’s as if they had to set up a new store every day,” said Juana Rodero, Primark’s director of people and culture, who also participated in the roundtable discussion. To supply the store, 1,500 lorries are unloaded every year, which translates into some 50,000 unloading hours and more than one million boxes.

“I think transformation is the word that defines these 10 years,” concluded Carlos Inácio. “We arrived, we set trends and the challenge is to stay on that path. We have the responsibility to keep building a dynamic and inclusive business that continues to grow,” said the executive. He also addressed one of the questions that hovers over any discussion of Primark’s future strategy: will it continue to focus on the offline channel, as it has done so far, or is it considering the leap to online sales? “We are not ruling out anything; what we are doing is studying and analysing the channel to launch it when we are certain that it will work. Currently, the company offers ‘click-and-collect’ in the UK; we are analysing the profitability of this model and whether it can be scaled to other territories, including Spain, the second-largest market for the brand.”

Primark, which has been operating in Spain since 2006, has 67 stores in the country, 250,000 square metres of retail space and employs more than 10,000 people. “Next year we will mark two decades in the country and we will celebrate it in style,” said the head of the chain in Iberia.