“Primark isn’t as cheap any more.”
It is something I keep hearing shoppers say when I ask them whether they shop at the fast-fashion giant.
“It’s definitely got more expensive,” says 19-year-old student Eshal Malik as she browses the jewellery at Primark with a friend.
But that might be about to change. Primark said on Monday that it was lowering prices on hundreds of clothing items, including jeans, jumpers and socks.
“It’s the kind of headline you’d expect from M&S or Next,” says retail analyst Natalie Berg, explaining that price cuts like this from such a low-cost retailer are surprising.
“You don’t want to join a race to the bottom,” she says. “But when Shein is selling dresses for £3, you’ve got to respond, right?”
Primark, which has more than 190 UK stores, has been experiencing a drop in like-for-like sales, a key measure in the retail industry.
The announcement of price cuts comes ahead of parent company Associated British Foods’ plan to spin off the business onto the London stock market next year.
The level of competition among fashion retailers has “evolved dramatically” over the past few years, and Chinese online marketplaces Shein and Temu are now competing for Primark’s customers, says Berg.
But there is also competition from other online retailers like TikTok Shop and Vinted, she says.
By slashing prices on some core items, Primark is likely hoping to woo shoppers with low-cost staples, in the same way that supermarkets attract customers with cheap milk and bananas, Berg says.
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