Primark plans UK home delivery service ahead of 2027 spin-off from AB Foods

Shift to e-commerce delivery

Associated British Foods announced on Thursday that its budget fashion brand Primark will offer home deliveries in the United Kingdom. The decision represents a change in strategy for the retailer, which had long avoided home shipping on the grounds that its low price points made packing and distribution costs uneconomical. To prepare for the launch, the retailer acquired a highly automated fulfilment facility in Sheffield, northern England. Although the company did not specify an exact start date, it confirmed that home deliveries will roll out across Great Britain in the future. Primark first entered online commerce in 2022 by introducing a click-and-collect service, which required shoppers to collect orders in physical stores.

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.

Corporate spin-off details

The logistics expansion coincides with plans by Associated British Foods to separate Primark from its grocery and agriculture businesses, which include Twinings tea and Kingsmill bread. The corporate demerger is scheduled for completion in December 2027, creating two distinct companies listed on the FTSE 100 index. Financial analysts estimate that Primark could carry a market valuation of up to £9 billion, while the remaining food business is valued at £4 billion. Following the separation, Associated British Foods chief executive George Weston will lead the food business, while Primark chief executive Eoin Tonge, formerly finance director at Marks & Spencer and Greencore, will continue to direct the fashion brand.

Trading performance and regional figures

In its fourth-quarter trading update for the period ending 12 September, Associated British Foods reported that Primark like-for-like sales are expected to drop 3.0%. While sales across the United Kingdom and Ireland edged up 0.4%, continental European stores recorded a 4.3% decline. For the full 2025–2026 financial year, overall like-for-like sales declined 2.6%, tempered by a 0.6% annual rise in the United Kingdom. Company executives stated that sales started strongly in early summer before prolonged hot weather delayed customer purchases of autumn ranges. Associated British Foods forecast its full-year adjusted operating profit broadly in line with earlier guidance, alongside higher adjusted earnings per share.

Our priority focus areas, the UK and womenswear, continued to outperform our other markets and categories.

Chain expansion and history

Primark generates the highest revenues across the Associated British Foods portfolio and employs more than 80,000 workers worldwide. The company was founded by Arthur Ryan under the Penneys brand in Dublin in 1969, later opening its first British retail shop in Derby in 1974. To stimulate footfall during slower European trading periods, the retailer launched an "iconic value" marketing campaign cutting prices across hundreds of autumn and winter garments. George Weston noted that initial customer response to the price reductions had been encouraging, even as European retail conditions remained challenging.