Key facts
- Primark will offer home delivery in Britain for the first time.
- The retailer is preparing to split from its owner, Associated British Foods (ABF).
- The demerger is expected to complete in December 2027.
- Primark's sales were expected to drop 3% in the quarter ended September 12.
- Primark's iconic value campaign cut prices across hundreds of autumn and winter products.
Primark is set to launch home delivery in Britain for the first time, a significant shift for the fast-fashion retailer that has historically avoided the channel due to cost concerns. The move coincides with its planned demerger from owner Associated British Foods (ABF), which is anticipated to be completed by December 2027, creating two separate FTSE 100 companies. Analysts project Primark could be valued at £9bn and ABF's food business at £4bn post-split.
In an update on Thursday, Primark stated that its digital maturity and the success of its click-and-collect service, alongside online market developments, now present an opportunity for profitable growth through home delivery. The company has acquired an automated fulfilment facility in Sheffield to support this expansion. Despite the new delivery initiative, Primark expects its sales to decrease by 3% for the quarter ending September 12. Sales in the UK and Ireland are projected to increase by 0.4%, while continental Europe is expected to see a 4.3% decline.
George Weston, ABF's chief executive, noted that trading in Europe remained challenging but expressed optimism about the customer response to Primark's "iconic value" campaign, which involved price reductions on numerous autumn and winter items. Weston, a member of the controlling billionaire family, will lead the food business after the demerger. Eoin Tonge, an experienced finance executive, will continue as chief executive of Primark. The fashion chain, originally founded as Penneys in Dublin in 1969 by Arthur Ryan, opened its first UK store in Derby in 1974 and now employs over 80,000 people globally.