Primark to Start Home Delivery as Sales Fall Ahead of Split
The decision is a major about-face for the budget fashion chain as it tries to stem falling sales ahead of its split from Associated British Foods.
Primark has announced plans to introduce a home delivery service in Britain following its initial foray into e-commerce four years ago. The retailer acquired a fulfilment facility in Sheffield to facilitate deliveries to customers' homes. Primark did not offer online shopping until 2022, when it launched a click-and-collect service, but it is now exploring home deliveries to boost its trade.
ABF, Primark's parent company, stated that home deliveries could lead to profitable growth, especially in light of subdued sales following recent hot weather. Although Primark plans to continue expanding its Click and Collect service, it aims to offer home delivery in the future. ABF expects UK sales to increase by around 1% in the fourth quarter, while like-for-like sales, which exclude store openings and closures, are anticipated to decline by 3%.
The reduced sales are attributed to the delayed launch of autumn/winter clothing due to the hot summer weather, followed by a stronger trading period as temperatures dropped at the end of the quarter. ABF is set to spin off Primark from its food business next year, as the fast-fashion retailer faces competition from brands like Shein and Boohoo, as well as online platforms such as TikTok Shop and Vinted. In July, Primark mentioned plans to lower prices on numerous clothing items.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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