In short
- Primark has bought a warehouse in Sheffield to enable home deliveries in Great Britain, but has not said when the service will launch.
- Associated British Foods, which owns Primark, predicts UK sales will grow about 1% in the fourth quarter of the year, with like-for-like sales broadly flat in the UK and down 3% globally.
- Primark did not sell goods online until 2022, when it launched a click-and-collect service that still required shoppers to travel to collect purchases.
- Retail analyst Julie Palmer said Primark “has been playing catch up for years” and that launching home deliveries “is as much about defence as growth”.
- John Lewis reported half-year losses of £124m, widened from £88m a year earlier, with department store sales down 2% and Waitrose sales up 4%.
Primark plans to offer home delivery in Great Britain, four years after launching its first online service, and has bought a warehouse in Sheffield to ship products to customers’ homes. The retailer, owned by Associated British Foods, has not said when the delivery service will start.
What has Primark announced?
Primark said it plans to launch home delivery in Great Britain. The retailer has bought a warehouse in Sheffield to enable it to ship products to homes, but it has not given a launch date. Associated British Foods (ABF), which owns Primark, said the fashion chain would “continue to grow click and collect and… will in the future offer home delivery in Great Britain”. Primark did not sell goods online until 2022, when it launched a click-and-collect service which meant shoppers still had to travel to pick up their purchases.
Why is Primark launching home delivery now?
Analysts said the decision to offer home delivery after years of resistance, including through the pandemic, indicated that Primark was facing major challenges from ultra-fast-fashion brands such as Shein. Retail analyst Julie Palmer said “Primark has been playing catch up for years” and that launching home deliveries “is as much about defence as growth”. She said “the real test” is whether Primark can make home deliveries profitable at the low prices fast-fashion customers expect, and that a “slick and effective returns policy” will be key.
Retail analyst Natalie Berg said Primark was “more than fashionably late to the e-commerce party” and will need to absorb the additional costs of returns, which tend to be higher than for in-store purchases because customers cannot try clothes on first. Dan Coatsworth, head of markets at AJ Bell, said competition among delivery firms such as InPost and Relay meant sending items by post had become “a lot cheaper in the past few years”.
How are Primark’s sales performing?
ABF predicts Primark’s UK sales will grow by about 1% in the fourth quarter of the year. Like-for-like sales, which strip out the impact of store openings and closures, are expected to be “broadly flat” in the UK and to fall 3% across the company’s global operations. ABF said sales of autumn/winter clothing started later than normal because of hot summer weather, but that “trading was stronger when the weather cooled towards the end of the quarter”. In July, Primark said it was lowering prices on hundreds of clothing items.
What else has Associated British Foods said?
ABF is planning to spin off Primark from its food business next year.
How is the wider UK retail sector performing?
John Lewis, which operates department stores and Waitrose supermarkets, reported on Thursday that its half-year losses had widened to £124m from £88m a year earlier. Sales in the department store arm fell 2%, with consumers holding back on discretionary spending, while Waitrose sales rose 4% and profits slipped slightly after price cuts and “the extra cost of running our operations through the heatwaves”. Chairman Jason Tarry said the results reflected “a more challenging trading environment and the increased costs of doing business”.
UK retailers are also grappling with higher costs for labour and energy, as the Federal Reserve and Bank of England weigh rate rises amid higher oil prices. Separately, a couple were left £1,300 out of pocket after a UK air traffic control failure.
Frequently asked questions
When will Primark launch home delivery?
Primark has not given a launch date. The retailer said it plans to offer home delivery in Great Britain and has bought a warehouse in Sheffield to ship orders to customers’ homes.
Why is Primark offering home delivery now?
Analysts said the move follows years of resistance, including through the pandemic, and reflects competition from ultra-fast-fashion brands such as Shein and platforms such as Vinted and TikTok Shop.
How are Primark’s sales performing?
Associated British Foods expects Primark’s UK sales to grow about 1% in the fourth quarter of the year, while like-for-like sales are forecast to be broadly flat in the UK and 3% lower across its global operations.
What did John Lewis report?
John Lewis reported half-year losses of £124m, widened from £88m a year earlier, with sales in its department store arm down 2% and Waitrose sales up 4%.
With reporting from BBC News.
Stock image, not from the events described. Burkes Outlet Store — Ente75 / Wikimedia Commons (Public domain)