Primark announces home delivery launch for Britain as online rivals intensify pressure
Primark will launch home delivery for British customers as the discount fashion retailer responds to mounting competition from online rivals and evolving shopping habits, its parent company Associated British Foods announced today.
The move represents a significant strategic shift for the retailer, which operates nearly 200 stores across the UK and has long resisted offering delivery, arguing that razor-thin profit margins could not absorb the additional costs.
ABF said Primark's growing digital capabilities and changes in the online retail market have now created opportunities for profitable growth through home delivery. The company did not specify a launch date for the service.
Chief executive George Weston declined to reveal timing details during a call with City analysts, describing the information as commercially sensitive. He indicated that the retailer aims to ensure most home delivery sales represent new business rather than simply replacing existing store purchases.
Sheffield warehouse acquisition enables faster rollout
The announcement coincided with news that Primark has purchased a highly automated distribution centre in Sheffield from Debenhams Group for £90 million. The facility will receive £76.5 million on completion, with the remaining £13.5 million paid upon vacant possession in early 2027.
Weston described the Sheffield acquisition as a critical element of the home delivery strategy, allowing Primark to launch the service more quickly than building new infrastructure from scratch. The automated warehouse will provide competitive package dispatch costs, he noted.
The decision comes as Primark faces intensifying competition from online fast-fashion retailers. Chinese rival Shein has captured approximately 40% of the UK ultra-fast fashion market and is forecast to become the country's sixth-largest apparel retailer by 2027, with market share projected to rise from 2.2% in 2023 to 2.8%.
Building on click-and-collect foundation
Primark has gradually expanded its digital presence in recent years. The retailer first trialled click-and-collect in November 2022 with 25 stores in North West England, North Wales and Yorkshire, initially offering only children's products. By May 2025, the service had rolled out to all 187 UK stores, offering approximately 5,000 items with a £10 minimum order and no delivery charge.
Earlier this year, Primark launched a mobile app for British customers to support its click-and-collect offering, acknowledging that shoppers increasingly rely on digital tools for easier shopping experiences.
The home delivery initiative marks a defining moment for chief executive Eoin Tonge, who joined as interim CEO in March 2025 following Paul Marchant's departure and was confirmed in the permanent role in March 2026. Tonge previously served as ABF Group Finance Director and held senior positions at Marks & Spencer and Greencore.
Sales slowdown amid strategic transition
The announcement came alongside disappointing trading updates from ABF. Primark reported slowing sales growth and expects a 3% decline in its fourth quarter ending 12 September. The wider group warned that losses at its sugar business would reach the higher end of its £25 million to £60 million guidance range for the current financial year.
Shares in ABF plummeted nearly 10% to 1,818.5 pence following the announcements.
Market analysts offered mixed reactions to the home delivery plans. Mark Crouch of eToro said the move closes a longstanding gap but would not rescue Christmas trading, whilst Aarin Chekrie of Hargreaves Lansdown cautioned that operating a profitable delivery and returns service presents significant challenges.
The strategic shift unfolds as Primark prepares for independence from its parent company. ABF announced in April 2026 that it would spin off Primark from its food businesses through a demerger expected to complete by end of 2027, with both entities anticipated to join the FTSE 100. The separation will incur approximately £75 million in one-off transaction costs and below £45 million in annual ongoing dis-synergies.
Primark operates 486 stores across 19 markets globally, generating approximately £9.5 billion in annual revenue and employing more than 83,000 people. The company is controlled by the Weston family through Wittington Investments, which holds approximately 59% of ABF.
