Sectorlow cost has always felt like swimming in a crowded ocean. Competition is intense, and a weaker player gets swallowed whole. Primark faced a rough patch during the pandemic because, unlike rivals such as Shein and AliExpress, it hadn’t prioritized online sales. The brand took a hard look at its approach and, in March, signaled a decisive shift toward digital commerce. Officially announced this Wednesday, the parent company behind Primark, Associated British Foods, confirmed the launch of an online store and a broader digital strategy aimed at attracting new customers and keeping existing ones engaged. The move comes as Primark reported 2,009 million euros in its third fiscal quarter, an 81% rise in sales versus the same period in 2021, underscoring the potential lift from an expanded online presence.
“The digital side is advancing rapidly across the UK and beyond, spreading through Europe and other markets”, noted the CFO of Associated British Foods, John Bason, highlighting the expected gains in both sales and profitability. The plan includes not only opening for online sales but also introducing near real-time product availability reporting for stores, a feature designed to bridge the gap between online demand and in-store fulfillment.
Implementing this shift was quick. Earlier this year, Primark redesigned its UK website to emphasize inventory visibility across its 190 stores. Now the brand is moving into full online shopping, with a pilot for a Click and Collect service slated to begin in the UK toward the end of 2022. Customers will be able to place orders online and pick them up at designated locations without home delivery charges, a model that can attract shoppers seeking convenience and speed.
Initially, the focus is on children’s fashion, with a catalog of up to 2,000 products designed to showcase the new order pickup workflow. The rollout is expected to extend beyond the UK into other markets, including Spain, where Primark operates 55 stores, with a broader global deployment anticipated in 2023.
Whether or not Click and Collect is in use, customers may notice changes in price as the business adjusts to inflationary pressures. Despite a challenging first half of the fiscal year, with an operating profit of 491 million euros for October through March, the performance represents a substantial improvement compared with the prior year. The group emphasizes that inventory strategy and pricing will be calibrated to balance margins with the cost realities facing the business.
Company leadership has signaled a measured approach to pricing in the Fall and Winter collections, focusing on selective increases rather than across-the-board hikes. This stance reflects the need to maintain competitive pricing while safeguarding profitability amid broader economic headwinds. The strategic emphasis on online channels, enhanced store visibility, and flexible pickup options positions Primark to attract digital-first shoppers without sacrificing its value-driven brand promise.