Primark is to introduce home delivery in Great Britain, marking a significant shift in strategy for the value fashion retailer after years of resisting full online shopping.
Associated British Foods, Primark’s parent company, said it had acquired a highly automated warehouse in Sheffield from Debenhams Group for £90 million to support the expansion.
The company did not give a timetable, saying home delivery would be introduced “in the future” across England, Scotland and Wales.
The move represents a further step in Primark’s digital transformation after the retailer expanded its “click and collect” service, allowing customers to order online and collect purchases from stores.
Dan Coatsworth, head of markets at AJ Bell, described the decision as the “biggest UK retail news of the year”.
“Having full online transactional capabilities is something the company has always shied away from,” he said.
“It has always argued that low price-point items are uneconomical to send, particularly if someone is only ordering a pair of socks or a T-shirt costing a pound or two.
“It stubbornly retained this view for longer than anyone expected, before easing back by launching a click and collect service.
“We’re now primed for the full home delivery experience.
“While physical stores remain relevant, online shopping is well established and Primark clearly had no choice but to adapt to the modern retail world.”
The announcement comes as Primark faces mixed trading conditions. ABF said sales were expected to have fallen 2.6 per cent on a like-for-like basis during the financial year ending Saturday, although UK sales were estimated to have risen 0.6 per cent.
Primark’s strong start to summer was followed by weaker trading during prolonged hot weather, which delayed customers’ purchases of autumn clothing. Sales have improved as temperatures cooled.
ABF chief executive George Weston said: “Our priority focus areas, the UK and womenswear, continued to outperform our other markets and categories.
“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 Great Britain in the future.
“There is now an opportunity for incremental and profitable growth through this channel.”
ABF is preparing to separate Primark from its food businesses and list it as a standalone FTSE 100 company by the end of 2027.
The group, which owns brands including Kingsmill, Twinings, Jordans, Patak’s and Hovis, warned that adjusted operating profits in its food division would be slightly below previous expectations.
Hot weather has reduced demand for hot tea, while higher gas costs linked to the Middle East conflict and poor conditions affecting the UK beet crop have hit its sugar operations.
ABF expects the division to report an adjusted operating loss towards the “higher end” of its £25 million to £60 million guidance range.
Shares in ABF fell by about 9 per cent in early trading on Thursday.
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