Primark is preparing to introduce home delivery in Britain, marking a major shift for the value-fashion retailer, which has for years resisted selling its low-priced clothing directly to
customers online.
Associated British Foods (AB Foods), which plans to separate Primark from its food operations in a demerger expected to be completed in December 2027, said on Thursday that changing market conditions had created an opportunity for the retailer to expand profitably into home delivery.
Primark already operates a Click & Collect service in Britain but has traditionally argued that delivering individual low-cost items to customers was difficult to make commercially viable. The company now believes improvements in online retail economics, including changes to delivery charges and returns policies, have altered that calculation.
"Primark's digital maturity, including the success of Click & Collect, and online market developments, mean there is now the opportunity for profitable growth through the home delivery channel," AB Foods said.
Chief Executive George Weston said the company had not yet set a launch date or provided financial projections for the new service.
To support its online expansion, Primark has acquired a highly automated fulfilment centre in Sheffield from Debenhams for £90 million ($122 million). The facility is expected to provide the infrastructure needed to handle direct-to-consumer orders as the retailer expands beyond its predominantly store-based model.
Dan Coatsworth, head of markets at AJ Bell, said the move reflected the changing expectations of consumers, while noting that Primark's extensive physical-store network would remain central to its business.
"While physical stores remain relevant, online shopping is well established and Primark clearly had no choice but to adapt to the modern retail world," he said.
Primark trading comes under pressure
The announcement came as AB Foods reported weaker-than-expected trading at Primark, contributing to a sharp decline in the group's shares.
AB Foods stock fell more than 11% on Thursday, taking its decline for 2026 to almost 16%, as investors focused on weaker Primark sales and the prospect of deeper losses in the group's sugar business.
Primark's like-for-like sales are expected to decline 3.0% in the fourth quarter through September 12. Performance in Britain and Ireland has been more resilient, with comparable sales forecast to rise 0.4%, while continental Europe remains under pressure, with sales expected to fall 4.3%.
Weston said trading conditions in continental Europe continued to be difficult, with efforts to improve Primark's customer proposition still at an earlier stage than in Britain.
The planned online expansion could therefore become an important source of future growth as Primark seeks to strengthen its digital presence and reduce its reliance on footfall at physical stores.
Demerger remains on track
AB Foods said preparations for the separation of Primark from its food businesses were progressing well, with completion still expected by December 2027.
The group's remaining operations include grocery brands such as Ovaltine, Ryvita and Twinings, alongside its sugar, agriculture and ingredients businesses.
Outside Primark, grocery sales are expected to increase by mid-single digits in the fourth quarter, while ingredients revenue is forecast to rise by around 10%.
The sugar division remains a significant drag on the group. Lower average selling prices in Britain and Spain have reduced both revenue and profitability, and AB Foods expects its sugar losses for the 2025-26 financial year to be at the upper end of its previous £25 million-£60 million guidance range.
The company expects sugar losses to widen further to between £70 million and £170 million in 2026-27.
Despite the pressures facing the sugar business and weaker Primark trading, AB Foods said adjusted operating profit for 2025-26 should remain broadly in line with previous expectations.
For 2026-27, the group expects most businesses to make progress, although sugar and the costs associated with integrating its recently acquired Hovis bread business are expected to weigh on performance.
For Primark, meanwhile, the move into home delivery represents a significant strategic change as the retailer prepares to operate as a standalone company and compete more directly in Britain's increasingly digital fashion market. Photo by GD137NB, Wikimedia commons.
