Discount fashion retailer Primark, which trades under the Penneys brand in Ireland, opened its first store outside Britain and Ireland yesterday. The outlet in Spain pits Primark against Spanish clothing giants Zara and Mango.

The new Primark outlet in the Plenilunio shopping centre outside Madrid brings the number of stores owned by the company to 128. The store will employ 102 people and cover an area of 35,000 sq ft.

"We chose Spain as we believe it has many similarities to the UK, and particularly Ireland, in terms of culture, consumer tastes, trends and purchasing," a Primark spokesman said.

Primark is expanding to Spain after luring customers away from Next and other high-street chains in Britain and Ireland. First-half sales at stores open at least a year climbed 6 per cent as Primark won plaudits from the fashion press and bargain-hungry shoppers alike.

The company plans to open 46 more outlets this year. Its acquisition of 41 Littlewoods stores last year means new Primark shops are opening at a rate of one a week.

"Before we start thinking about further expansion our focus is on ensuring that we get this store right and ensure the Primark offering is a success with Spanish consumers," the spokesman said, adding that the company wasn't concerned about Spanish competition. "If we always give our customers the best value in the market, why worry about what the other guy is doing?"

Primark is a subsidiary of Associated British Foods (ABF), a listed company that owns brands such as Ryvita and Twinings Tea. ABF's chief executive is George Weston, whose family owns upmarket stores like Brown Thomas in Ireland and Selfridges in London. Mr Weston is worth £932 million (€1.37 billion), making him the third-richest man in British fashion, according to the Sunday Times Rich List.

The first Penneys store was opened in Dublin's Mary Street in 1969 by the reclusive Arthur Ryan. The 70-year-old Irishman has been named "most influential person in high-street fashion" by Drapers Record.