Primark has refuted claims about its imminent introduction of online delivery services amid discussions of potential digital expansion. The retail chain recently attempted to acquire the ASOS online fulfillment center in Lichfield, Staffordshire, but lost out to M&S, who secured the site for £67.5 million.
According to sources cited by The Times, the warehouse, spanning 437,000 sq ft, was purpose-built for e-commerce operations and is unsuitable for traditional retail purposes. While acknowledging the necessity of an online presence, Primark’s stance on home delivery remains unaltered, as confirmed by a company spokesperson to the Mirror.
Primark currently provides a click and collect service, enabling customers to order online and collect in-store, yet has resisted customer demands for home delivery. With 486 stores in 19 countries and over 83,000 employees, Primark recently introduced its first mobile app in the UK. The app offers personalized notifications and real-time stock availability checks, facilitating the use of the click and collect service across all 189 stores.
The parent company, Associated British Foods (ABF), disclosed plans to demerge the Primark retail business by the end of 2027, with both entities set to be listed on the FTSE 100 post-split. Wittington Investments, owned by the founding Weston family of ABF, will retain majority stakes in both separated businesses.
The separation is estimated to incur around £75 million in one-off separation and transaction costs, with an expected loss of synergies totaling less than £45 million. ABF’s CEO, Mr. Weston, emphasized the strategic importance of the move for both the food business and Primark, aiming to unlock growth opportunities in their respective markets.
The Chairman of ABF, Michael McLintock, echoed the sentiment, affirming that the demerger of Primark is deemed the optimal strategy to maximize long-term shareholder returns and enhance the distinct potential of both Primark and the Food business as independent entities.
