Primark has refuted claims of imminent online delivery services initiation despite speculation about potential expansion of its digital operations. The fashion retailer recently made a bid to acquire the ASOS online fulfilment warehouse in Lichfield, Staffordshire, but lost out to M&S in a £67.5 million deal.
According to sources cited by The Times, the 437,000 sq ft warehouse is tailored for e-commerce fulfilment and not suitable for retail stores. While acknowledging the necessity of online presence, Primark’s spokesperson clarified to the Mirror that the company’s stance on home delivery remains unchanged.
Primark currently offers a click and collect service allowing customers to purchase online and collect in-store, resisting calls for direct home delivery. With 486 stores across 19 markets and over 83,000 employees, Primark recently launched its first mobile app in the UK, providing personalized notifications and real-time stock checks.
Associated British Foods (ABF), Primark’s owner, disclosed plans to spin off the retail business by the end of 2027, with both entities set to be listed on the FTSE 100 post-split. Wittington Investments, controlled by the Weston family, will retain majority ownership in both companies.
The separation is expected to incur around £75 million in one-off costs, with anticipated foregone synergies of approximately below £45 million. ABF’s CEO highlighted the move as a crucial step in the company’s evolution, aiming to unlock growth opportunities for both the food business and Primark.
Chairman of ABF emphasized the board’s decision to demerge Primark as a strategic move to enhance shareholder value and facilitate a better understanding of the business. The future outlook for Primark and the food business is optimistic as they transition into independent entities.
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