Online holdout Primark starting delivery service in UK to arrest sales slump

Primark, known in Ireland as Penneys, plans to offer home delivery in Britain, making it one of the last big retailers to do so as the low-cost fashion chain battles to reverse a slump in sales.

The company, which had long insisted it had no need for an online business, also announced the acquisition of a warehouse in Sheffield as part of its plan to roll out the service.

For years the retailer, which has many of its 473 stores in the UK, said that the economics of online delivery did not make sense given the low price of its clothes.

But sales at the once high-flying retailer, which is owned by parent company Associated British Foods (ABF), have come under pressure in recent months.

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In the latest sign of its struggles, Primark warned on Thursday that sales would fall 3 per cent in the quarter to September 12th, sending shares in ABF down 10 per cent. ABF plans to spin off Primark next year.

The London-listed group also warned that an operating loss at its sugar division would be at the higher end of its previous guidance range of £25 million (€29.1 million) to £60 million.

Announcing Primark’s online delivery plan, ABF said: “Primark has made significant progress in building its digital capabilities and will continue this through both growing Click & Collect and by offering home delivery in Britain in the future. There is now an opportunity for incremental and profitable growth through this channel.”

The purchase of the warehouse in Sheffield from rival retailer Debenhams will allow Primark to process the orders itself rather than outsourcing them. Primark introduced its Click & Collect service as a trial in 2022, which has been well received by customers.

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Primark said it would start the delivery service in “the future”.

ABF said work on the demerger of the retail chain from its food businesses, which includes brands such as Twinings tea and Dorset Cereals, was progressing well and is expected to be completed in December 2027. – The Financial Times Limited 2026