Primark News & Analysis
2 articles
Market Mood
Primark Plans Launch of Home Delivery Service in UK
Primark is planning to introduce a home delivery service in the UK, after years of resistance to online sales. This move comes as the retailer faces growing competition from fast-fashion brands like Shein and aims to expand its market presence. To facilitate the new service, Primark has purchased a warehouse in Sheffield. The retailer has not disclosed the exact launch date for the service. In 2022, Primark began offering a click-and-collect service, requiring customers to visit stores for pickup. The new home delivery initiative signifies Primark's adaptation to evolving consumer preferences for convenience and online shopping. Retail analyst Julie Palmer notes that successful online sales depend significantly on a retailer's return policy. She emphasizes that a hassle-free returns process is crucial for customer satisfaction and retention. The planned home delivery service is a strategic response to market demands and will potentially enhance Primark's competitiveness. By aligning with online shopping trends, Primark aims to capture a broader customer base and increase its sales volume.
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Associated British Foods (ABF) Reports H1 Revenue of £9.5 Billion
Associated British Foods (LON:ABF) reported group revenue of £9.5 billion for the 24 weeks ended February 28, which remains flat compared to the previous year, translating to a 2% decline at constant currency. Adjusted operating profit was £691 million, down 18% at constant currency, primarily due to lower profits in Primark, grocery, and sugar segments. The company reiterated plans to demerge Primark by the end of 2027, with management stating they believe this will improve long-term decision-making. They expect both businesses to maintain strong balance sheets as standalone entities.
Read More: Associated British Foods (ABF) Reports H1 Revenue of £9.5 Billion