Associated British Foods said Primark’s adjusted operating profit fell 11% in the year to Sept. 12, as the retailer prepares to expand beyond stores with Great Britain home deliveries, the Guardian reported.
ABF’s annual results showed Primark’s like-for-like sales fell 2.6% in the year ended Sept. 12. Revenue rose 4% to £9.82 billion at actual currency rates, helped by new stores. Adjusted operating profit fell 11% to £1,005 million at actual currency rates; on a constant-currency basis, it declined 12%.
ABF said lower like-for-like sales and markdowns weighed on Primark’s earnings, while investment in its customer offer and digital capabilities also added pressure. U.K. like-for-like sales rose 0.5%, while sales fell 4.7% in continental Europe; ABF said Primark gained market share in the U.K. The company said its work to lower prices and reach customers was further along in the U.K. than in continental Europe.
ABF said home delivery could bring in additional customers and support incremental, profitable growth. A highly automated depot it acquired in Sheffield will provide capacity for delivery and Click & Collect, the company said.
ABF Chief Executive George Weston told the Guardian that delivery could serve shoppers who live far from stores and those who prefer online orders. ABF said delivery fees, return policies and minimum basket sizes have shifted the economics of selling online.
Click & Collect offers a precedent: ABF said the service contributed to like-for-like sales growth. The Guardian reported that Primark began its U.K. rollout in 2022. Associated British Foods expects group adjusted operating profit to stay below 2026 levels in 2027, mainly because of Sugar, extending its earlier outlook for lower 2027 profit as sugar losses widen.
The Guardian reported that Primark is targeting home delivery in Great Britain by Dec. 2027, around two years earlier than its previous plan. ABF’s results confirm a future Great Britain service but do not give the launch date.
