In defence of Primark and its stance on online retail
Yesterday, we reported that Primark could add Click & Collect services to its revamped website, although new stores in markets such as Italy and the United States would be the fast fashion retailer’s main growth driver.
It will launch a new website in the United Kingdom by the end of March, and across its 13 other markets by the autumn.
This will provide customers with near real-time information on product availability by store and enable Primark to tap the data of its customers.
"We’re making the digital move forward in a very big way in both the UK and the rest of Europe. That will generate sales and profits for us," John Bason, Finance Director at Primark's owner, Associated British Foods, told Reuters.
"Does this give us a capability to move further forward? Well let’s have a look at that. If there was an e-commerce opportunity for us, it will probably be more in the area of Click and Collect.”
Home delivery remains off the agenda as the numbers don't stack up for Primark’s low price points.
"You can’t get our value by delivery to home, it’s as simple as that," Bason said.
Primark gets a lot of stick for its refusal to fully embrace all things e-commerce. But we at RTIH admire the retailer for going against conventional wisdom..
Analysts and other industry observers can shout ‘online laggards are making a huge mistake’ as much as they like.
But the fact remains, online delivery is a drag on profitability, particularly for low margin goods.
How many retailers have mastered this part of the omnichannel puzzle? Very few, if any.
Could Click & Collect bridge the gap between bricks and clicks?
Answers on a postcard, please, to the usual address.
