According to sources at The Times, Primark has identified a 40,000 square meter warehouse in Staffordshire as part of building an e-commerce operation. The warehouse, previously owned by Asos and equipped with automation tailored for direct-to-consumer deliveries, was recently sold to Marks & Spencer for £67.5 million, equivalent to just over SEK 850 million.
Sources familiar with the matter state that the facility is specifically designed for e-commerce and would be "impossible to use for physical stores." The same sources believe that Primark's management “knows they need to establish themselves online” in order not to lose market share.
Primark’s Official Response
The alleged strategic shift would represent a major change for Primark, which has long maintained that its low prices and tight margins cannot support the logistics and return costs associated with home delivery.
In a statement attributed to a Primark spokesperson, the reports of an upcoming e-commerce venture are dismissed:
Primark’s position on home delivery remains unchanged. As part of regular reviews of our distribution network to support future growth, we explored this facility as a potential option for our Click & Collect service in the UK.
Competition from Asian Platforms
Speculation surrounding the company's digital presence comes at a time of increased competition from Asian low-cost players such as Shein, Temu and TikTok Shop. These platforms have established a strong position among price-conscious consumers who traditionally make up Primark’s core target group.
The company is also undergoing organizational changes. In April, parent company Associated British Foods (ABF) announced its intention to spin off Primark from the food business by 2027 to create two separate publicly traded companies. Analysts value Primark as a standalone company at between £10 and £13.4 billion. The new venture and the lost bidding war now fall on the recently appointed CEO Eoin Tonge, who was previously CFO at Marks & Spencer.
From "Non-E-commerce" to App Launches
Primark’s relationship with e-commerce has been a recurring topic in the retail industry for several years:
- 2019: Management stated that they were considering digital alternatives but pointed out that picking, packing and returns were deemed too expensive in relation to the prices of the goods. The company simultaneously urged customers to not shop for their clothes through third-party sellers on Amazon.
- 2020: During the pandemic, the company’s sales fell to zero when the physical stores were forced to close. The lack of e-commerce was total.
- 2022: The company launched a "virtual storefront." It resembled an online store but lacked a purchase button; the function only allowed visitors to see the range and check stock levels in physical stores. Later that year, a Click & Collect service was rolled out in Great Britain.
- 2026 (this year): In April, Primark launched a mobile app in Great Britain to manage Click & Collect, an app already in use in Ireland and Italy.
Recent investments in digital channels show that the company is gradually moving its positions online. But when – or if – the company activates home delivery remains to be seen.