Why does Primark do not sell online?

Primark is the big Irish fashion company, with presence in all Europe, expanding to U.S.A. They have just opened the biggests clothing shop in Spain, in Madrid.
Almost ridicolously prices, present-day designs and – in my opinion – a more than acceptable quality, make their clothes a product object of desire and impulsive buying.

Primark dest

However, contrary to the current trend, they have completely discarded the online sales. Why do the act like that, if it is an activity that goes in increase?

Primark had a try on the ecommerce between June and September 2013, selling some of their products in the marketplace Asos. After the 12 week experience, they reaffirmed its business model sales point.

John Bason from Primark

John Bason, Financial Director in ABF (Associated British Foods), Primark’s parent Company, insists that they do not see viability on an online selling service with the range of prices they have and he illustrated this with an example:

“Look at a £2 T-shirt. Everyone think it’s clickety-click but one third of clothes get returned. That means someone has to pick it up, someone has to deliver it, someone in the store has to take it back, refold it. It doesn’t work at the lower price point.

Primark has grown from 181 stores in 2007 to 278 in 2014. It doesn’t seem a big increase, but what really has increase has been its volumes of sales: in 2007 they sold £1,600 million, and they reached £4.950 million in 2014. (about 6,700€ million).
So, these numbers reaffirm their model, and Primark focuse on their strategy of expansion.

Primark Liverpool | Maria en la red


SOURCES:
Mirror
The Guardian

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