Comment: Primark turns to clicks but won’t abandon bricks

Value fashion giant Primark’s decision to experiment with etail on Asos’ website justifiably prompted much interest.

Just as striking was Primark’s official comment on the venture, highlighting the very limited nature of the trial and that its priority remains to open more bricks-and-mortar shops. The cautious tone was no doubt partly an effort to cool potential over-excitement about a move online, or concern that the powerhouse retailer’s core business was running out of steam.

Primark’s absence from the ecommerce arena had prompted much comment so a decision to take the plunge was always going to be loaded with meaning - for some it would be another sign the high street is finished.

But Primark’s continued commitment to stores is a restatement of a long-held position. Boss Paul Marchant typically gets more shopper requests to open a store near them than he does for it to run a transactional website.

And so far, the economics have supported the emphasis on stores - partly because of the massive volumes that go through the tills and partly because of reconciling the costs of ecommerce with the low prices of Primark’s wares.

At April’s interims, Primark’s parent ABF reported that selling space had increased by 1 million sq ft, or 13%, compared with a year earlier. That pace would not continue for the rest of this financial year the retailer said, but would pick up again next, reflecting international expansion.

Ecommerce and omnichannel retail will continue to grow and it makes sense for Primark to be involved. But the success of its shops shows too that reports of the death of the store, and the high street, are much exaggerated.

There’s no single model for retail success other than effectively serving customers in ways they like.