primark
E-Commerce UK

Primark has always been a bit of a fascination for me. While they are not present in Sweden, they are in nearly every city in the UK and are expanding across Europe.

Primark ranks third in clothes sales in Europe, behind Zara and H&M. What puzzles me most about Primark is their refusal to engage in online sales or e-commerce, a strategy heavily pursued by Zara and H&M.

Recently, Primark trialed click-and-collect in 57 stores, and it seems to have been a huge success. By avoiding home delivery, Primark sidesteps the associated costs and complexities. The company plans to explore category expansions and enhance digital marketing. Despite internal debate, Primark aims to blend its online and offline offerings, leveraging store visits to boost sales. This measured approach seeks to maintain profitability while adapting to evolving consumer behaviors.

Even during the pandemic four years ago, they refused to do home delivery, which hit them hard.

Currently, the retailer is trialling click-and-collect across 57 stores for its womenswear and kidswear products. Despite being slow off the blocks, retail technology publisher and consultant Miya Knights says, “everything Primark has done online so far has been sensible.” She notes that the retailer’s gradual extension to its largest category of womenswear via a limited number of stores allows Primark to test and learn, then iterate and optimize quickly while minimizing its exposure to risk.

Carina Perkins, senior retail and e-commerce analyst at Emarketer, supports Knights’ view, stating, “Primark’s strategy so far makes perfect sense.” She explains that by focusing on click-and-collect, Primark avoids the significant costs and complexities of home delivery, which had previously deterred its online expansion.

Vinny O’Brien, an e-commerce strategist and former eBay executive, notes that Primark’s hesitation to move online, even during the pandemic, stemmed from the challenges of making e-commerce operations viable. Back in 2014, when online retailers like Asos were thriving, John Bason, then finance director of Primark’s parent company Associated British Foods and now head of its strategic advisory board, candidly acknowledged the online challenges Primark faced.

As Primark looks to extend its click-and-collect trial, more stores and categories could be added in the future. Primark believes that despite its continued growth from physical stores, it needs to invest in digital if it wants to maintain this momentum in the future, particularly as Gen Z gains more purchasing power. Although this doesn’t necessarily mean launching home delivery, it acknowledges that while Gen Z shoppers like to browse online, they still enjoy visiting stores.