The traditional high-street dominance of Primark is navigating a rigorous stress test as the retailer confronts a dual challenge from ultra-fast digital competitors and shifting consumer patterns. In its latest trading update for the 16 weeks ending January 3, 2026, parent company Associated British Foods (ABF) reported a 2.7 per cent decline in group like-for-like sales, despite a 1 per cent increase in total revenue to £3.5 billion.
While the retailer’s ‘Anti-Ecommerce’ stance was long a hallmark of its low-cost model, management has countered recent market share erosion by finalizing the nationwide rollout of Click & Collect across all 187 Great Britain stores. This strategic infrastructure shift aims to retain a younger, tech-savvy demographic that has increasingly migrated to platforms like Shein, which generated an estimated $38 billion in revenue in 2024.
Strategic expansion and geographic divergence
The retail landscape currently presents a stark regional contrast; while Primark’s UK operations showed resilience with a 1.7 per cent like-for-like growth, continental European markets saw a sharper 5.7 per cent contraction due to weakened consumer confidence. To offset these domestic headwinds, Primark is aggressively scaling its international footprint, recording a 12 per cent sales growth in the United States and launching its first franchise in Kuwait this quarter. Analysts at GlobalData suggest, while physical store expansion remains a primary revenue lever,
Primark’s long-term stability hinges on its ability to synchronize ‘Everyday Value’ with the real-time responsiveness of digital-first rivals. As the company forecasts a steady 10 per cent operating margin for FY26, the focus has shifted toward high-margin house brands and a low-stock holding model to minimize markdowns and enhance profitability in a volatile global economy.
The retail division of Associated British Foods, Primark is a leading international value fashion chain offering apparel, beauty, and homeware. It operates over 450 stores in 17 markets, with aggressive growth targets in the US and the Middle East. Founded in 1969, the brand maintains a high-volume, low-margin business model.
