Primark has revealed plans to offer home delivery across Great Britain for the first time, marking a major shift for the budget fashion chain long associated with in-store shopping only.
The announcement came alongside a trading update from parent company Associated British Foods that sent shares tumbling by around nine per cent in early Thursday trading.
To support the move into deliveries covering England, Scotland and Wales, ABF has purchased a highly automated warehouse in Sheffield from the Debenhams Group for £90million.
The company said the acquisition is not expected to affect jobs.
ABF did not provide a specific launch date for the service, stating only that home delivery would arrive “in the future.”
The retailer’s like-for-like sales are expected to have fallen by 2.6 per cent over the financial year ending this Saturday, compared with the previous twelve months.
Weaker performance across continental Europe was the primary driver behind the decline, while UK sales are estimated to have risen modestly by 0.6 per cent year on year.
Primark enjoyed a strong start to the summer trading period, but prolonged hot weather then held back sales as customers delayed purchasing autumn clothing ranges.
The business said trading had picked up in more recent weeks as temperatures dropped.
The chain also recently reduced prices on hundreds of fashion lines, a move it said had generated positive sales momentum, particularly across nightwear, leisure and fitness categories.
Primark enjoyed a strong start to the summer trading period
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GETTY
The delivery plans build on Primark’s expanding click and collect service, which allows shoppers to browse and buy online before picking up their orders in store.
ABF is also preparing to split Primark off from its food operations, with the retailer set to be listed on the FTSE 100 as an independent company by the close of 2027.
Chief executive George Weston said: “Our priority focus areas, the UK and womenswear, continued to outperform our other markets and categories.”
The company said the acquisition is not expected to affect jobs
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GETTYMr Weston added: “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.”
Beyond Primark, ABF is also facing pressure across its food business, with profits now expected to come in slightly below previous forecasts for the full year.
The company said several factors had weighed on performance, including the summer heatwave, which reduced demand for Twinings hot tea.
ABF’s wider grocery portfolio includes Kingsmill, Jordans and Patak’s, as well as Hovis following its recent acquisition.
The group’s sugar business has also struggled, hit by elevated gas costs connected to the Middle East conflict and the impact of hot, dry weather on the UK beet crop.
ABF said it expects to report an adjusted operating loss for the sugar division towards the higher end of its guidance range of £25million to £60million for the full year.