Primark all set to bag a Princes Street shop

The budget clothes giant is negotiating a deal on Marks & Spencer's ladieswear store at 91 Princes Street.

Months of negotiations on the premises, which are understood to comprise 100,000 square feet of space over six floors, are expected to conclude before Christmas.

But sources close to the deal, who said it was worth 2 million in annual rent, said there were several outstanding issues with the building still to be settled.

Primark, which has stores throughout Scotland, including in Glasgow, Ayr and Stirling, is believed to have been searching for a suitable property in the Capital for some time, refused to comment.

Today, members of Edinburgh's business community said the presence of Primark would bring a welcome boost to the shopping offer in the city.

Primark, a subsidiary of Associated British Foods, is known for selling clothes at the budget end of the market.

The success of the company, which has its headquarters in Ireland, is based on sourcing its supply cheaply and the fast turnaround of stock in stores.

Graham Birse of Edinburgh Chamber of Commerce said Primark would be welcome in the Capital.

He said: "There is a demand for affordable brands like Primark and TK Maxx.

"It's a winner with consumers and we hope they will do well in Edinburgh.

"Over time we want to see Princes Street develop as the leading shopping street in the UK outside London and there are lots of exciting plans to increase and enhance the value of retail in the city."

John Conroy, of property consultants Ryden, said it was well known that Primark had been looking for suitable premises in Edinburgh for some time.

He said: "It's not a done deal yet but it's being dealt with and it will happen.

"Primark is one of the top retailers at the moment and this is a very good move for them - it's a great unit.

"They had a longstanding requirement for Edinburgh but there was nothing available to suit their requirements."

However, a source close to the deal said that there were still several issues that needed to be sorted out before the deal was sealed.

He said: "It's much more space than Primark would want and there are title issues over adjoining ownership rights."

He added that the 2m a year rent would be one of the biggest on Princes Street.

A spokeswoman for Primark said: "We have no comment about an Edinburgh store.

"As a rule we do not comment on speculation about new store openings."

Earlier this month Marks & Spencer confirmed it was closing its ladieswear shop to expand its larger Princes Street store and bring all its staff and departments under one roof.

Its conversion of office and storage areas into retail space will be complete by October next year.

The company shut a third outlet on Princes Street six years ago, saying the store configuration did not work for customers and made it confusing to shop.

A spokeswoman for Marks & Spencer said the firm would not comment on speculation.