Primark journey shows digital transformation not about ditching successful business models

Now is the critical moment for Primark to accelerate its digital journey. The convergence of the retailer's enhanced website capabilities, growing digital engagement, and robust store network creates a unique opportunity, argues Matthew Critchley, CEO at Odin Stones and former CMO at Kingfisher.

Primark is positioned to redefine value driven retail for an omnichannel age by leveraging its physical presence while expanding digital touchpoints, he adds.

Critchley made his comments as sales at Primark dropped for the first time since the Covid pandemic lockdowns, with the company saying its low income shoppers had been hit by economic worries.

Owner Associated British Foods (ABF) reported that sales at Primark’s established UK stores fell 6% in the final three months of the year.

Critchley said: "Primark's digital transformation presents a fascinating inflexion point. With 140 million website visits across 17 markets and a 23% global traffic increase, the numbers tell a compelling story: customers are ready for a digitally enabled Primark experience."

"The planned expansion of Click and Collect to all GB stores marks just the beginning. What's particularly intriguing is how Primark has maintained its core value proposition while strategically embracing digital innovation. Their approach to self-checkout technology in a few UK stores demonstrates their commitment to testing approaches to offering customer experience without compromising their cost-effective model."

The next chapter should focus on deepening digital integration: expanding the product range online, introducing innovative in-store technologies, and potentially launching a digital loyalty programme. These steps would drive growth and strengthen customer relationships across all channels, Critchley believes.

"Primark's journey reminds us that digital transformation isn't about abandoning successful business models, it's about evolving them for tomorrow's consumers," he concluded.

2024 RTIH INNOVATION AWARDS

Digital transformation was a key focus area at the sixth edition of the RTIH Innovation Awards.

The awards celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering.