Primark is set to launch home delivery in Great Britain for the first time, marking a major shift in strategy after years of resisting ecommerce.
Parent company Associated British Foods confirmed the move in its latest trading update, revealing that Primark has acquired a highly automated fulfilment facility in Sheffield to support the service.
It has not yet disclosed when home delivery will launch.
Primark has long maintained that the economics of delivering its low-priced products directly to shoppers did not stack up, instead focusing its digital investment on driving customers into stores.
However, ABF said the retailer’s growing “digital maturity”, alongside the success of its Click & Collect service and changes in the online market, meant there was now an opportunity for “profitable growth through the home delivery channel”.
The move represents a significant U-turn for the retailer, which told Retail Gazette earlier this year that its position on home delivery remained unchanged.
At the time, Primark said its interest in the former Asos fulfilment centre in Lichfield had been linked to supporting the growth of Click & Collect rather than launching a full ecommerce operation.
Primark has steadily ramped up its digital capabilities in recent years, rolling out Click & Collect across Great Britain alongside greater investment in its website, CRM, digital marketing and mobile app.
ABF said the retailer’s strategy would remain store-led, with home delivery designed to deliver incremental growth alongside the continued expansion of Click & Collect.
Chief executive George Weston said Primark had made “significant progress” in building its digital capabilities and that the business now saw an opportunity to generate additional profitable growth online.
However Primark continues to battle softer trading across parts of Europe.
Sales are expected to rise around two per cent during its fourth quarter, boosted by new store openings and its growing franchise operation, while like-for-like sales are forecast to fall around three per cent.
UK and Ireland like-for-likes are expected to edge up 0.4 per cent, compared with a 4.3 per cent decline across continental Europe.
For the full financial year, Primark expects sales to grow around two per cent, while like-for-like sales are forecast to fall 2.6 per cent. Its adjusted operating margin is still expected to be approximately 10 per cent.
The strategic shift comes ahead of Primark’s separation from ABF’s food operations. The group said work on the demerger was progressing well and remains on track for completion in December 2027.
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