Primark refutes claims of upcoming online delivery service initiation, despite speculation about potential expansion of its digital operations. The fashion retailer recently attempted to acquire the ASOS online fulfillment center in Lichfield, but lost the bid to M&S for £67.5 million.

Reports indicate that the 437,000 sq ft warehouse was purpose-built for e-commerce fulfillment and not suitable for retail operations. Although sources suggest that Primark acknowledges the necessity of an online presence, a company spokesperson confirmed that their stance on home delivery remains unchanged.

Primark already offers a click and collect service, allowing customers to purchase online and collect in-store. The retailer operates 486 stores across 19 markets and employs over 83,000 individuals. Recently, Primark introduced its first mobile customer app in the UK, facilitating personalized notifications and real-time stock checks.

Associated British Foods (ABF), Primark’s parent company, disclosed plans to spin off the retail division by the end of 2027, with both entities expected to be listed on the FTSE 100 post-split. Wittington Investments, owned by the Weston family, will retain majority stakes in both businesses.

The separation is estimated to incur around £75 million in one-off separation and transaction expenses, potentially resulting in the loss of synergies of less than £45 million. ABF CEO, Mr. Weston, emphasized the strategic move as critical for maximizing the long-term growth prospects of both the food and retail businesses.

ABF Chairman, Michael McLintock, emphasized the board’s decision to demerge Primark to enhance shareholder value and optimize the growth opportunities for both Primark and the Food business as independent entities.