Primark's Decade in Madrid: €83 Million GDP Impact and Retail Transformation

Primark, the Irish fast-fashion retailer, is celebrating a significant milestone: ten years since opening its flagship store on Madrid's iconic Gran Vía. The brand marked this anniversary by releasing an economic impact report that quantifies its substantial contribution to the Spanish economy, revealing an €83 million boost to national GDP and €42 million in tax revenues for 2024 alone.

Economic Impact and Retail Transformation

The comprehensive report, prepared by economic consultancy Afi, demonstrates Primark's remarkable economic footprint in the Spanish capital. The 12,500 square meter store on Gran Vía has become more than just a retail location—it's an economic engine for Madrid and Spain. Beyond the direct GDP contribution, the store supports a substantial employment base with 1,060 direct jobs and creates additional indirect employment through its supply chain and related businesses.

According to the analysis, for every direct job at Primark's Gran Vía location, the Madrid labor market gains 0.4 indirect and induced jobs. Furthermore, 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, creating a significant multiplier effect throughout the local business ecosystem.

Revitalizing Madrid's Commercial Hub

Primark's arrival on Gran Vía in 2015 marked a strategic shift for the brand, moving from Spanish shopping centers to a prime high-street location in a century-old building that originally housed the Madrid-Paris department store. The decision proved transformative not only for Primark but for the entire commercial corridor.

The store's impact extends beyond its direct economic contributions. Since Primark's opening, Gran Vía has experienced a remarkable commercial renaissance. Retail establishments along the famous street have increased from 101 to 186 between 2015 and 2025, while restaurants have nearly doubled from 46 to 90. This "halo effect" has elevated the entire commercial district, forcing competitors to raise their standards and creating a more dynamic retail environment.

Operational Scale and Future Strategy

The Gran Vía store operates as a 24/7 facility, though not all hours are trading hours. The night shift workers face the monumental task of replenishing merchandise daily, essentially setting up a new store every night. The logistical operation supporting this flagship location is staggering: 1,500 lorries are unloaded annually, translating to approximately 50,000 unloading hours and over one million boxes processed each year.

Carlos Inácio, Managing Director of Primark Iberia, reflected on the decade of transformation: "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."

Looking ahead, Primark continues to evaluate its strategic direction, particularly regarding online sales. While the company currently offers click-and-collect services in the UK, it's carefully analyzing the profitability of this model for potential expansion to other territories, including Spain—the brand's second-largest market globally.

With 67 stores across Spain, 250,000 square meters of retail space, and over 10,000 employees, Primark has established a significant presence in the country since its initial entry in 2006. As the company approaches its 20th anniversary in Spain next year, its Gran Vía flagship stands as a testament to the brand's successful integration into the Spanish retail landscape and its substantial economic contribution to the nation.