Economy

Primark Accelerates Home Delivery Launch as Profits Fall

Primark Accelerates Home Delivery Launch as Profits Fall

By Islam El-Sakka

Primark will begin home deliveries in the UK by the end of 2027, bringing forward its online launch by about two years after a decline in annual profits. The retailer, owned by Associated British Foods (ABF), said the accelerated timeline was made possible by acquiring a robot-assisted warehouse in Sheffield from Debenhams, the parent of Boohoo, PrettyLittleThing and Karen Millen.

Warehouse Acquisition Speeds Rollout

Primark will take over the Sheffield facility by mid-2027 and is preparing suppliers to handle individual shipments alongside bulk store orders. The chain already offers click-and-collect in the UK, rolled out gradually since 2022, but does not yet serve mainland Europe. Home delivery will launch in the UK first, with European expansion to follow without a fixed timetable.

Profit Decline Amid Sales Growth

Sales rose 4% to £9.8bn in the year to 12 September, driven by new store openings. However, like-for-like sales in the UK grew only 0.5%, while established stores in mainland Europe fell 4.7% and US stores dropped 2.6% as consumers cut clothing spending. Operating profit fell 10% to £1bn after Primark invested in price cuts, improved ranges and increased marketing.

Spin-Off Planned for December 2027

ABF intends to separate Primark from its sugar and food businesses, which include Twinings, Blue Dragon and Jordans, by December 2027. Chief executive George Weston said the economics of home delivery had changed, with delivery and returns charges now covering most logistical costs. He added that research showed the service would attract new customers rather than cannibalize store sales.

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