Primark is allegedly preparing to launch online delivery for the first time in its history, as growing pressure from digital rivals Shein and Temu bites.
The brand has long resisted home delivery, arguing that its low prices and tight margins make the economics of fulfilment and returns difficult to justify.
However, sources told The Times that Primark “knows it needs to go online” after it made an unsuccessful bid for Asos’s automated fulfilment centre in Lichfield, Staffordshire.
The 437,000 sq ft warehouse, which was sold to Marks & Spencer for £67.5m, had been heavily upgraded by Asos and was designed specifically for ecommerce fulfilment.
Primark had reportedly identified the site as a potential route into online delivery, with its automation equipment enabling direct-to-home orders.
A source close to the deal said the warehouse would be “impossible to use for stores” and was built for digital retail.
The move to fully-fledged ecommerce would mark a major strategic shift for Primark, which has built its business around high-volume, low-cost store retailing, rather than transactional ecommerce.
Primark has taken cautious steps online in recent years. It launched click and collect in 2022 and last month introduced a mobile app for UK customers to support the service.
It had already rolled out similar apps in Italy and Ireland last year.
The loss of the Asos warehouse to M&S will likely be a setback for new Primark boss Eoin Tonge, who was recently appointed chief executive after previously serving as chief financial officer at M&S.
M&S’s clothing and home division is also led by John Lyttle, the former Primark executive who joined the retailer last year.
Primark’s renewed interest in online delivery comes as it faces intensifying competition from low-cost digital players including Shein, TikTok Shop and Temu, which have reshaped expectations around price, speed and product discovery.
It’s also navigating pressure on lower-income shoppers, a key part of its customer base, as household budgets remain stretched.
Parent company Associated British Foods revealed in April that it plans to demerge Primark from its food business by 2027, creating two separately listed companies on the London Stock Exchange.
The break-up would split Primark from ABF’s grocery and ingredients operations, which include Twinings, Kingsmill and Jordans.
Analysts have suggested Primark could be valued at between £10bn and £13.4bn as a standalone business.
The fashion retailer, founded in Dublin in 1969 under the Penneys name, now operates more than 450 stores worldwide and has long been viewed as the jewel in ABF’s crown.
A move into delivery would be one of the biggest changes in its history.
UPDATE: A Primark spokesperson told Retail Gazette that it remains committed to in-person sales only: “Primark’s position on home delivery remains unchanged. As part of regular reviews of our distribution network to support future growth, we explored this site as a potential option for our Click & Collect service in Great Britain.”
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