Primark has refuted claims of forthcoming online delivery services, despite speculations hinting at a potential expansion of its digital operations.
The retail brand recently sought to acquire the ASOS online fulfilment center in Lichfield, Staffordshire, but lost out to M&S, who secured the facility for £67.5 million. Sources revealed that the warehouse, spanning 437,000 sq ft, was purpose-built for e-commerce fulfillment and not suitable for retail stores.
While reports indicated that Primark acknowledges the necessity to establish an online presence, a Primark spokesperson clarified to the Mirror that their stance on home delivery remains unchanged. They explained that the warehouse was considered as a potential location for their Click & Collect service in the UK during routine distribution network evaluations to support future growth.
Primark already offers a Click & Collect service where customers can buy online and pick up in-store, declining persistent requests for home delivery. With 486 stores across 19 markets and over 83,000 employees, the company recently introduced its first mobile app in the UK, enabling personalized notifications and real-time stock checks.
Associated British Foods (ABF), Primark’s parent company, disclosed plans to demerge the Primark retail business by the end of 2027, with both entities expected to join the FTSE 100 post-split. Wittington Investments, owned by the Weston family, will retain majority stakes in both businesses.
The separation is projected to incur around £75 million in one-off separation and transaction expenses, with an expected loss of synergies amounting to “below £45 million.” ABF’s CEO expressed that the move marks a significant development for the company, providing enhanced focus on the distinct portfolios of the food business and Primark.
The ABF chairman highlighted that after thorough evaluation, a demerger of Primark was deemed optimal for maximizing long-term shareholder returns, emphasizing the substantial growth prospects for both Primark and the food business as independent entities.