Primark has announced plans for a Primark home delivery launch in Great Britain, backed by the purchase of a large fulfilment facility in Sheffield, as the retailer looks to revive sales after a difficult summer of subdued trading. The move marks a step-change for a chain that resisted selling goods online for most of its history.
Owner Associated British Foods (ABF) confirmed that Primark would ‘continue to grow Click and Collect and, having undertaken a detailed review, will in the future offer home delivery in Great Britain’. The company did not set a date for when shoppers will be able to order to their door.
The Sheffield warehouse at the heart of the Primark home delivery launch
The facility Primark has acquired in Sheffield is substantial. According to CIJ.World, the warehouse extends to approximately 615,000 sq ft, giving the retailer the infrastructure it needs to process online orders at scale.
The financial terms of the deal have also emerged. Property Week reports that Primark paid £76.5 million on completion, with a further £13.5 million due when it gains vacant possession of the warehouse from Debenhams, expected early next year. The total consideration is therefore £90 million.
Alongside home delivery, Primark will expand its existing Click and Collect service. That service, first launched in 2022, requires customers to travel to a store to collect orders rather than receiving them at home. According to TheIndustry.fashion, Click and Collect is currently available across 189 stores in England, Scotland and Wales.
Sales under pressure as hot summer hits trading
The announcement comes as Primark faces a tricky trading backdrop. ABF said UK sales for Primark are forecast to grow by about 1% in the fourth quarter of the year. The more closely watched like-for-like measure, which strips out the effect of new store openings and closures to give a cleaner picture of underlying performance, is expected to fall 3%.
The company pointed to the hot summer as a key factor. Sales of autumn and winter clothing started later than normal, though ABF noted that ‘trading was stronger when the weather cooled towards the end of the quarter’. The company said it sees ‘opportunity for profitable growth’ through home deliveries, which could help offset some of that lost momentum.
ABF said it lowered prices on hundreds of clothing items in July as Primark works to compete with rivals including Shein and Boohoo, as well as platforms such as TikTok Shop and Vinted. Retailers across the UK are also contending with higher costs for labour, energy and materials, adding further pressure on margins.
The challenge of making delivery pay is not lost on analysts. Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said the introduction of home delivery ‘will likely help boost the top line’. However, he cautioned that ‘running an efficient and profitable delivery and returns service is no easy task, and with Primark’s low price point, doing it profitably is even more difficult’.
Demerger from ABF on track for December 2027
The home delivery push comes as Primark prepares for life as a standalone business. ABF has been working towards spinning off the fashion chain from its food operations, and Streamline reports that the planned demerger is now expected to be completed in December 2027. Establishing a credible online proposition before that separation could be important in shaping how investors value the business once it trades independently.
Meanwhile, the wider high street picture remained difficult. John Lewis reported this week that its half-year losses have more than doubled, with sales in its department stores falling 2% as consumers held back on discretionary spending. Sales at Waitrose, which the John Lewis Partnership also owns, rose 4%.
For Primark, the next concrete milestone will be the vacant possession of the Sheffield warehouse from Debenhams, expected early next year, at which point the retailer can begin fitting out the facility and move closer to setting a live date for home deliveries.
