Primark has the right omnichannel retail strategy in place. Here’s why
Last week, Primark unveiled a new website, featuring thousands of products from across its ranges, as well as a fresh design, enhanced navigation and a new feature that allows customers to check stock availability in their local store.
This is launching first in the UK, before rolling out to Primark’s 13 other markets in the coming months.
Alongside the retailer’s in-house team, EPAM Systems has been the primary design and technology partner for the project.
The site has been built using technology components from a number of digital solution suppliers including Bloomreach, Amplience, commercetools, Microsoft and Salesforce.
Shoppers can check availability in-store at the product/size level.
Primark is also trialling digital marketing to support the initiative.
For the first time it will capture customer data to “deliver more personalised marketing as customers will be able to create an account, sign up to receive regular news from the business and create a Wishlist of their favourite products”.
Andrew Brothers, Chief Information Officer, Primark, said: “We know our new website is something that our customers have wanted to see from us for some time and we recognise we’ve moved later than most in this space.”
“However, that brings with it an opportunity as we’ve been able to spend time understanding the role digital can play to enhance our business.”
“The new site is underpinned by a modern and flexible technology architecture to give our customers the very best user experience.”
“There has been a fantastic team behind this launch, which we’ve bolstered in the last six to 12 months by attracting some amazing talent into our new digital and digitech functions – which continue to grow.”
“This gives us the foundation to bring our customers a continually improving digital experience in the months and years to come.”
"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. And, of course, they did exactly that last week when Primark unveiled the new look site.
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?
That remains to be seen, but one thing’s for sure. Primark understands the importance of digital to its business, but it also knows that a rush into all things online could damage its winning formula.
Ultimately, the retailer has the objective of driving more people into stores, not encouraging them to order online and get home delivery.
It’s a tough one to get right, but don’t bet against Primark pulling it off.
