Dubai Weekly
Primark has announced plans to launch a home delivery service in Britain, four years after its initial e-commerce entry in 2022, when it introduced a click-and-collect model. The retailer purchased a fulfillment center in Sheffield to support this expansion. Primark’s online sales were previously limited to click-and-collect, requiring customers to visit stores.
The company highlighted an opportunity for profitable growth through home deliveries, aiming to boost trade amid subdued sales due to recent hot weather. Associated British Foods (ABF), Primark’s parent company, confirmed that the fashion chain will expand home delivery services in Great Britain, though the launch timeline remains unspecified. ABF predicts a 1% increase in UK sales in the fourth quarter but expects like-for-like sales to decline by 3%, attributing the delay in autumn/winter clothing sales to summer heat.
Trading improved as temperatures cooled. Analyst Aarin Chiekrie from Hargreaves Lansdown noted that home delivery could enhance Primark’s revenue, though executing a profitable and efficient delivery and returns system—especially at its low price point—remains challenging. ABF plans to spin off Primark from its food business next year.
The retailer faces competition from brands like Shein and Boohoo, as well as platforms like TikTok Shop and Vinted. In July, Primark lowered prices on hundreds of clothing items. UK retailers are also dealing with rising labor, energy, and material costs.
John Lewis reported more than doubled half-year losses, with department store sales falling 2%, while Waitrose sales rose 4%.
Source: BBC
