Primark will offer home delivery in Britain for the first time, as the fast-fashion retailer prepares to spin off from its owner Associated British Foods (ABF). The clothing chain, which already offers a click and collect service in the UK, has long avoided home delivery, arguing that its low prices made it too difficult to absorb the cost of packing and shipping orders. However, the company disclosed on Thursday that it had acquired an automated fulfilment facility in Sheffield and would offer home delivery “in the future”.
The news comes as Primark prepares to split from its parent company ABF, the owner of Twinings tea and Kingsmill bread. The demerger, which is likely to complete in December 2027, is expected to create two new FTSE 100 companies, with analysts predicting that Primark could be valued at as much as £9bn, and the food business £4bn. The company told investors in an update on Thursday morning that it expected Primark’s sales to drop 3% in its quarter ended on 12 September, with the UK and Ireland up 0.4% but continental Europe down 4.3%.
George Weston, the chief executive of ABF, said Primark’s trading in Europe “remained challenging”, but the initial customer reaction to its “iconic value” campaign – in which it cut prices across hundreds of autumn and winter products – had been encouraging. Weston, a member of the billionaire family that controls ABF and who is the long-term chief executive of the group, is to lead the food business after the demerger. Eoin Tonge, an experienced former ABF, Marks & Spencer and Greencore finance director, will remain as chief executive of Primark.
The fashion chain, which was founded by Arthur Ryan under its Irish brand name, Penneys, in Dublin in 1969, opened its first shop in Britain in 1974, in Derby. It employs more than 80,000 people around the world.
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