Primark, once the darling of UK high streets, has run into trouble. They’ve announced a cut in around 3.1% like-for-like sales in their home territory of UK and Ireland for the year to September. The company attributes this decline to a “soft” consumer environment. They observe that fewer consumers purchased cold-weather gear amid last year’s unseasonably warm fall. With fast-fashion behemoths like Shein ramping up global competition, Primark is trying to thread the needle on a difficult retail environment.
Primark was hit hard with falling sales in all its core European markets. The company’s overall international sales continued their ascent, rising 1% from last year globally, bolstered by the new store openings in Europe and America. The brand has been very aggressive to increase its footprint. As a result, its grocery market share in the UK and Ireland has surged, according to data from market-research firm Kantar.
That’s not the only good news for the retailer to report. Primark has already announced a closure, with its store in Dartford, Kent set to close next year. It will mark the brand’s first store closing in 10 years. As this decision illustrates, challenges remain due to the consumer-driven market evolution and increased competition.
With a business model that has historically focused on bulk shopping, generally luring customers in with irresistibly low-priced clothing, accessories, and homeware. Despite this, its core customer base—mostly Gen Z—has been migrating to online rivals such as Shein and Vinted. These brands provide an incredible range of options for low cost, which is attractive to consumers looking to save on their overall spend.
Even seasoned shoppers like 20-year-old Abbi Lily were unamused by Primark’s new direction. She remarked, “They just don’t have the bargains as much anymore,” illustrating a shift in perception about value. Lily added that she thought shopping at Primark was “really overwhelming” and “hard to even find what you want.”
While one side of the brand equation walks away, the other side—your brand advocates—double down. Khloe Lightholder, a 34-year-old childcare worker from east London, said she was thrilled to be there, “I’m over the moon, I love Primark.” She reiterated that most shoppers still appreciate the chain’s low prices and wide selection.
A risen Shein is now Primark’s number one contender. They leverage AI to predict fashion trends and launch thousands of new styles each day. This rapid response to market demands allows Shein to stay relevant and attractive to younger shoppers who crave variety and novelty in their wardrobes.
“I like to buy more expensive items that I’m going to wear over the years,” said Martha, a 23-year-old student in Leeds. This sentiment is a harbinger of a larger movement among younger consumers who are increasingly distinguishing between the things they buy. As Martha noted, it’s not a permanent thing. Her advice: Recognize that less expensive fast-fashion pieces are often not going to be something you have for a long time.
Primark provides click-and-collect to almost 200 of its UK stores. It fails to offer home delivery. This failure might continue to push consumers to online marketplaces such as Shein, which offer convenience as well as choice.
Primark has experimented with pop-up shops in London and has opened its first permanent physical location within a department store in Paris. These initiatives intend to drive a new base of local shoppers and tourists looking for cheap fashionable looks. How effective these strategies will be is still uncertain given the growing competition and jockeying for attention.
The rapidly changing retail landscape offers pressing challenges and opportunity — with a critical moment just around the corner. In-store shoppers appreciate the excitement of discovering rainbow-hued racks full of money-saving trend-driven apparel delights. At the same time, consumers are growing to appreciate the convenience and broader selection of goods available through online shopping.