Primark chain has notched up £9.5billion of annual sales despite not going down the route of online deliveries that virtually all its rivals have done
Budget fashion giant Primark is never likely to offer online deliveries, says the boss of its owner
Primark – which marked its 50th birthday this year – has enjoyed storming success despite not following rivals by launching a deliver-to-home option. Bosses argue its low prices – and the costs around online orders and returns – means it doesn’t make sense.
George Weston, chief executive of Primark parent company Associated British Foods, said there “no likelihood” of that changing. He added: “I can’t see how it will ever make financial sense. We ask people to come to our shops instead.”
Instead, Primark’s website showcases ranges, while a click-and-collect option is being rolled out to all stores across England, Wales and Scotland by the end of 2025. The lack of deliveries hasn’t held Primark back as results yesterday revealed sales at Primark rose 6% to a record near £9.5billion in the past year, with profits up a hefty 51% to £1.1billion, helped by a range from singer Rita Ora.
Weston warned the Budget announced hike in employers’ national insurance would cost Primark, which employs 40,000 in the UK, “tens of millions” of pounds. Asked whether it would lead to price rises, he said: “We will try very hard not to and to absorb it. We will search very hard for efficiencies.” One hope is that a rise in the National Living Wage next April will boost shoppers’ spending power.
But Weston slammed Labour’s promised shake-up of business rates, with a focus on permanently lower bills for smaller shops, pubs and hospitality. He warned among those losing out would be big store chains such as Primark which are often seen as major draw – or “anchor – for other city centre businesses. “They are critical for the long-term of our high streets,” he said.
It was another strong year for ABF, whose sprawling business also includes making sugar, groceries and ingredients. Group annual revenues rose 4% to a record £20bn, with profits up 38% to almost £2bn.
