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[BUSINESS] · United Kingdom · 38 sources

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Primark to launch home delivery service in Great Britain

Primark, owned by Associated British Foods (ABF), has announced plans to launch a home delivery service across Great Britain, including England, Scotland, and Wales. This move marks a significant strategic shift for the retailer, which has historically focused on physical stores and resisted direct-to-consumer e-commerce due to low profit margins on small items.

To support this expansion, ABF has acquired a highly automated fulfillment center in Sheffield from the Debenhams Group for £90 million. The company is also progressing with a planned demerger to separate Primark from its food and sugar operations, a process expected to conclude by December 2027.

Despite the digital expansion, ABF reported challenges in other sectors. The sugar business is projected to face operating losses between £25 million and £60 million due to high energy costs and low European prices. Additionally, Primark's like-for-like sales are expected to decline by approximately 2.6% to 3% for the financial year, though the company aims to drive growth through its new digital capabilities and continued expansion of its click-and-collect service.

Entities

Action · Associated British Foods · Debenhams Group · George Weston · Lombardia · Marco Ardizzone · Milan · Monza · Parma · Pop Mart · Primark · Salumeria del Design

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