Primark is reportedly preparing to launch online delivery for the very first time, according to sources cited by The Times. The high street fashion chain, which currently operates 486 shops across 19 markets and employs more than 83,000 workers, has long resisted customer pleas for home delivery but now appears ready to expand its digital operations.
Current Click and Collect Service
Primark already offers a click and collect service, allowing customers to purchase items on its website and pick them up in store. However, the company has been under pressure to introduce home delivery to compete with other retailers. The potential move comes just weeks after Primark launched its first mobile customer app in the UK, which includes personalised notifications and a real-time stock check function. The app also facilitates the click and collect service, available in all 189 of its UK stores.
Failed Warehouse Acquisition
The report follows Primark's unsuccessful attempt to purchase the ASOS online fulfilment warehouse in Lichfield, Staffordshire. The 437,000 sq ft facility, described by sources as designed "specifically for e-commerce fulfilment" and "impossible to use for stores," was acquired by M&S for £67.5 million. This suggests Primark is actively seeking to enhance its online infrastructure.
Spin-Off Plans
Primark's owner, Associated British Foods (ABF), recently announced plans to spin off the Primark retail business by the end of 2027. Both companies are expected to be listed on the FTSE 100 following the separation. Wittington Investments, the vehicle of ABF's founding Weston family, will retain majority stakes in both entities. Bosses anticipate around £75 million in one-off separation and transaction costs, with synergies lost estimated at "below £45 million."
George Weston, chief executive of ABF, commented: "This is an important step in the evolution of ABF. For our food business, the separation will enable greater understanding of the breadth and strength of our differentiated portfolio and its long-term growth opportunities as the only FTSE 100 pure play food producer. For Primark, it enables the creation of appropriate governance to maximise the future potential offered by Primark's powerful brand, strong customer proposition and opportunities in existing and new markets."
Michael McLintock, chairman of ABF, added: "The board has now completed its in-depth review of the structure of ABF and has concluded that a demerger of Primark is the best way to maximise long-term returns for shareholders, reflecting Primark's scale today and the need for a better understanding of the Food business. The opportunities ahead for both Primark and Food are considerable and the board firmly believes that each will thrive as an independent entity."
The Mirror has contacted Primark for comment regarding the potential online delivery launch.
