Primark Faces Growing Threat as Shein's Online Dominance Bites

Primark has reported a 3.1% decline in like-for-like sales in the UK and Ireland for the year to September, citing a "weak" consumer environment and reduced demand for winter clothing during last year's mild autumn. The retailer attributed this decline to increased competition from online stores, including Shein and Vinted, which have been attracting young shoppers with their low prices, wide product range, and home delivery options. According to Tamara Sender-Ceron, an associate director at market-research agency Mintel, Primark's performance has significantly underperformed the overall UK clothing market, which is experiencing subdued growth. "Primark faces increased competition, particularly from online marketplaces that offer lower prices, a wider range of products, and home delivery," Sender-Ceron said. "This is a challenge for Primark, as it has traditionally relied on its brick-and-mortar stores to drive sales." At Primark's flagship store on Oxford Street in London, some shoppers expressed concerns about the retailer's ability to remain relevant. Serena Milius, a frequent Primark customer, noted that online marketplaces like Shein and Temu offer even lower prices and a broader selection of products. "I've started shopping more online because I can get better quality products at a lower price," Milius said. "Primark's prices are still competitive, but I'm willing to spend a bit more for products that are made to last." Martha, another shopper, echoed Milius' sentiments, stating that she prefers to spend more money on better-quality products rather than buying cheap, trendy items. "I'd rather spend £20 on a pair of jeans that will last me for years than £10 on something that will fall apart after a few wearings," Martha said. Primark has been a staple of UK high streets for decades, offering affordable clothing, accessories, and homeware to budget-conscious shoppers. However, the rise of online retail has disrupted the traditional retail model, forcing brick-and-mortar stores to adapt to changing consumer habits. While Primark has invested in its e-commerce platform, it still lags behind online marketplaces like Shein and Vinted in terms of home delivery and product range. As the retail landscape continues to evolve, Primark faces a challenge to remain relevant in a market dominated by online shopping. The company has acknowledged the need to adapt to changing consumer habits, but it remains to be seen whether it can successfully navigate this shift and maintain its position as a leading retailer in the UK and Ireland.