Penneys looks set to raise its prices for its autumn and winter lineup of clothing due to the ongoing inflation crisis.
This is according to its parent company Associated British Foods with the warning sending the company's share price lower.
Primark - which trades as Penneys in Ireland - will look to offset the increase in costs by increasing the price of select items in its Autumn and Winter collection.
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"The most important thing is that we will remain the most competitive, best-priced clothing retailer on the high street or online,” said Chief Executive Officer George Weston in an interview.
He added: "This is the highest inflation rate in 30 or 40 years depending on what article you’re reading" and that it's the first time in "quite a long time" that Penneys has had to up its prices.
The spring and summer collections will not be affected by this price rise.
"We will absolutely ensure that we are the best value around, that's not going to change," Finance chief John Bason told Reuters.
Primark has seen its sales increase by 59% to €3.54 billion as of March 5 in large part due to Covid-19 restrictions easing across Europe.
Meanwhile, Penneys is gearing up to launch a new Irish website which will have a range of brand new features including the ability to check stock in stores.
The website will be launched this summer.
The retailer has just gone live with its brand new site in the UK which features stock pages with better imagery and more detailed information.
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