Primark will launch home delivery for its customers in Britain as it comes under pressure from cheaper online rivals.
Its owner, Associated British Foods, said the discount clothing brand, which has resisted the move for years, would offer delivery ‘in the future’.
Customers have long called for Primark, which has nearly 200 stores in the UK, to offer delivery like other high street brands.
It has previously argued that its low prices and tight margins cannot absorb the additional costs related to online delivery, but the dominance of brands such as Shein seems to have forced its hand.
Primark has moved closer to online retail in recent years, launching a mobile app for British customers earlier this year to support its overdue move into click-and-collect, which debuted in November 2022.
It had previously conceded that customers are ‘increasingly turning to digital tools that make shopping easier’.
Primark promises to offer home delivery ‘in the future’ as online rivals ramp up pressure
In a statement this morning, owner ABF said: ‘Building on this strategy, Primark will continue to grow Click & Collect and, having undertaken a detailed review, will in the future offer home delivery in Great Britain.
‘Primark’s digital maturity, including the success of Click & Collect, and online market developments, mean there is now the opportunity for profitable growth through the home delivery channel.’
It has bought a Sheffield fulfilment facility from Boohoo for £90million as it ramps up its online operations.
It marks a significant move by chief executive Eoin Tonge, who joined a year ago, as he prepares for Primark to be spun off from owner ABF.
An expansion of Primark’s online offering came as the retailer reported a slowdown in sales and expects a 3 per cent fall in its fourth quarter to September 12.
The wider group warned that losses at its sugar business would be towards the higher end of its previous guidance range of between £25million and £60million for the current financial year.
Shares plummeted nearly 10 per cent to 1,818.5p.
Aarin Chekrie, equity analyst at Hargreaves Lansdown said home delivery would help to boost Primark’s top line, but ‘running an efficient and profitable delivery and returns service is no easy task, doing it profitably is even more difficult.’
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