Primark refutes rumors about initiating online delivery services for the first time, despite indications of a potential expansion in its digital operations. The fashion retailer recently vied for the ASOS online fulfillment warehouse in Lichfield, Staffordshire, but lost out to M&S, which acquired it for £67.5 million.
According to sources cited by The Times, the 437,000 sq ft warehouse is tailored for e-commerce fulfillment and unsuitable for retail store operations. While acknowledging the necessity to establish an online presence, Primark’s spokesperson clarified to the Mirror that their stance on home delivery remains unaltered.
Primark already offers click and collect services, enabling customers to purchase online and pick up in-store. With 486 stores across 19 markets and over 83,000 employees, the company recently introduced its inaugural mobile app in the UK, facilitating personalized notifications and real-time stock checks.
Associated British Foods (ABF), Primark’s parent company, disclosed plans to separate the retail business by the end of 2027, with both entities set to be listed on the FTSE 100 post-split. Wittington Investments, associated with ABF’s founding Weston family, will retain majority stakes in both businesses. The separation is estimated to incur around £75 million in one-off separation and transaction costs, with potential synergy losses of under £45 million.
ABF’s Chief Executive, Mr. Weston, emphasized the strategic significance of the separation for the group’s evolution, highlighting the growth potential for both the food business and Primark as independent entities. The Board’s decision to demerge Primark aims to optimize long-term returns for shareholders and enhance operational focus for each business unit.