With a surge in first-half profits, British fashion giant Primark plans to expand its in-store pickup service to all UK stores by the end of 2025. Pre-tax profits for Primark’s parent company, Associated British Foods, surged by 37% to £881 million, while Primark’s adjusted operating profit jumped significantly by 46% to £580 million. Over the 24 weeks ending March 2nd, Primark’s sales increased by 7.5%, reaching £4.5 billion, with like-for-like sales growing marginally by 2.1%.
The growth is reportedly driven by the opening of new stores and last year’s “carefully selected price increases” to offset inflation, boosting profit margins from 8.3% to 11.3%. In the UK, sales grew by 4.3% compared to the same period last year.
Primark indicates that following a successful 18-month trial, it intends to expand its in-store pickup service to all 184 stores in England, Scotland, and Wales by the end of 2025. Besides nationwide expansion, it plans to introduce new categories and products available for online purchase, including men’s and curated homeware and lifestyle products and ranges, to complement the expanded service.
Primark CEO Paul Marchant stated, “Our 18-month trial of click and collect was aimed at understanding how we could offer greater convenience to our customers, wherever they may be, to shop with us but in a way that complements our business and stores.” “We are now confident that we have found a model that can achieve both simultaneously and support our plans for business growth.”
“Customer feedback on our services has been positive as they greatly value the convenience our services provide, and we have also seen these services attracting new customers. I am pleased to see the further expansion of such services, giving more people more reasons to choose Primark and discover the tremendous value and selection in our stores.”
