U.K. retailer Primark is pummeling many U.S. merchants on price. According to a new pricing survey by Morgan Stanley, U.S. retailers are charging 202 percent more than Primark.
The study compared prices between Primark and 14 stores in Boston, where the Primark opened its first U.S. location. Analysts found huge price disparities.
"Primark's low price points could act as a disruptive force in U.S. retail, in our view," bank analysts wrote, according to MarketWatch. "We think Primark's similar offering but at even sharper price points could win over shoppers, particularly value-focused millennials."
Teen retailers are particularly challenged as the brand shares similar shoppers with Express, Gap's Old Navy and Forever 21.
On like-for-like items (excluding off-price retailers), JCPenney and Target showed the greatest disparity, coming in at 198 percent and 154 percent more, respectively.
Walmart came the closest to Primark prices, charging a 36 percent premium on like items.
The first U.S. Primark store opened in September in a former Filene's store in Boston. The company will open seven more stores in the next year, thanks to a lease deal with Sears Holdings.
- see this MarketWatch story
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