PostgreSQL: Foreign key on string column

I'm currently in a process of redesigning a legacy database. One of the tables primary key is a varchar(254). I need to create a table relating to it.

So for example:

create table "Item" 
(
    "Name" VARCHAR(254) PRIMARY KEY
);

CREATE TABLE "Uses" --new table
(
    id SERIAL PRIMARY KEY NOT NULL,
    "itemName" VARCHAR(254) NOT NULL,
    FOREIGN KEY ("itemName") REFERENCES "Item" ("Name")
);

I was wondering, if each row of Uses will have a reference(memory address) to the Item tables column - that way not copying the value around.

Or will it indeed copy that value, causing superfluous space loss.

Also would like a general opinion on using a VARCHAR as a primary and foreign key. Should maybe better alter the old database to give it a proper id?

Thank you very much.