Why Primark Doesn’t Sell Online

27 April 2020| Post by Szymon

AuthorSzymon

Many, if not all businesses have been affected one way or another by the current Corona Virus pandemic

In recent news, retail chain Primark has announced that ever since they closed their doors in order to abide by the current public health guidelines, their sales stand at zero. The main reason behind this is that unlike many of their competitors on the high street, Primark has never taken their business online.

With many retailers still bringing in sales thanks to their online stores, you may be thinking why Primark hasn’t jumped at the chance. But, there is a rational explanation to why Primark isn’t doing the obvious despite having not sold anything since the lockdown began and having furloughed 68,000 of their staff.

It just wouldn’t add up

Primark is without a doubt one of the most popular fashion retailers that you will find on the high street at the moment. With that being so, it’s no surprise that many of us have questioned why they wouldn’t take their always stylish and on-trend products, consisting of everything from fashion, to sportswear and homeware, onto an ecommerce platform.

One of Primark’s selling points is its budget prices that allow shoppers to fill their baskets with the latest trends without breaking the bank. According to a number of sources, selling online would not make sense in terms of their pricing as the added costs that come with delivery, labour and returns would have to be included in the price, meaning Primark’s famous budget prices would have to increase.

Primark’s very own Finance Director stated; “The cost to support home delivery can’t be supported with our price points.”

Getting lost amongst competitors

With going online making Primark’s low prices obsolete, the retailer could just become lost amongst its competitors. People opt for shopping at Primark thanks to its bargain prices and numerous fashion and homeware dupes that beat almost all of its competitors.

With a loss of one of their most favoured selling points, as well as the added cost of delivering their stock – sales would still not be enough to carry on business as usual.

Returns culture

Research shows that businesses across the world lose over half a trillion dollars a year due to product returns. Recently, returns culture has become ever so prevalent as online shopping continues to rise. Returns culture refers to the nonchalant attitude that many consumers have been seen to adopt surrounding returns, not realising that for ecommerce owners, it’s a bit of an expensive nightmare. It’s been found that 30% of products get returned; a statistic recognised by Primark’s Financial Directo John Bason who in a statement released to the press pointed towards the fact that their low prices and the rates surrounding returning amongst ecommerce would just not make sense.

So, for now, Primark will be staying away from ecommerce because it is just not suited for their business, even in this time where all retailers and businesses are struggling.

Want to know whether ecommerce is the right direction for your business? Contact Limely today!

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