Primark has refuted claims of an impending launch of online delivery services, despite speculation about potential digital expansion. The fashion retailer recently vied for the ASOS online fulfilment warehouse in Lichfield, Staffordshire, but was outbid by M&S for £67.5 million.
The 437,000 sq ft warehouse, tailored for e-commerce fulfilment, was deemed unsuitable for retail store purposes. While insiders suggest that Primark recognizes the necessity of an online presence, an official spokesperson informed the Mirror that their stance on home delivery remains unchanged.
Primark currently offers a click and collect service, enabling customers to order online and pick up in-store. The company, with 486 stores across 19 markets and over 83,000 employees, recently launched its inaugural mobile app in the UK. The app allows shoppers to receive personalized notifications and conduct real-time stock checks, enhancing the click and collect experience.
Associated British Foods (ABF), Primark’s parent company, disclosed plans to separate the Primark retail business by the end of 2027, with both entities set to be listed on the FTSE 100 post-split. Wittington Investments, controlled by the Weston family, will retain majority stakes in both businesses.
The split is anticipated to incur around £75 million in one-off separation and transaction costs, with a projected loss of synergies of less than £45 million. ABF’s CEO, Mr. Weston, views the move as pivotal for the company’s evolution, providing strategic benefits for both the food business and Primark’s future growth prospects.
ABF Chairman, Michael McLintock, emphasized the board’s decision to demerge Primark to optimize long-term shareholder returns, citing the brand’s current scale and the need for a deeper understanding of the Food business. The board is confident in the independent growth prospects of Primark and the Food division, foreseeing significant opportunities for each as standalone entities.
