Primark finally set to launch online deliveries
The retailer launches the service four years after making its first foray into internet shopping.
Primark, the British fast-fashion retailer owned by Associated British Foods (ABF), is set to launch a home delivery service in Britain, four years after its initial foray into e-commerce. ABF announced the plans, stating that Primark has acquired a fulfilment facility in Sheffield to enable it to ship products directly to customers' homes.
Until 2022, Primark did not sell goods online, offering only a click-and-collect service, which required customers to visit a store to pick up their purchases. ABF predicts Primark's UK sales will grow by approximately 1% in the fourth quarter of the year, but like-for-like sales are expected to decline by 3%. The company anticipates that the introduction of home delivery will help boost sales, but acknowledges the challenge of running an efficient and profitable delivery and returns service, especially for a retailer with a low price point.
ABF is also planning to spin off Primark from its food business next year, as the fast-fashion chain faces stiff competition from brands like Shein and Boohoo, as well as emerging platforms like TikTok Shop and Vinted. In July, Primark announced a price reduction on hundreds of clothing items. Retailers across the UK are struggling with rising costs for labor, energy, and materials.
John Lewis reported a more than doubling of its half-year losses, while Waitrose, owned by the same partnership, saw a 4% increase in sales.
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