Associated British Foods’ budget fashion giant could be preparing to ditch its “stores-only” model for the first time
Primark, the budget fashion arm of Associated British Foods (LON: ABF), may be preparing to launch home delivery for the first time, according to a report this weekend — a move that could mark a historic strategic shift for one of Britain’s most recognisable retailers.
The discount chain has long resisted the lure of e-commerce, building its low-price model around the elimination of delivery costs. A move online would represent a seismic departure from that philosophy.
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The timing is significant. ABF announced in April that it intends to demerge Primark into a standalone FTSE 100-listed company by the end of 2027, giving the retailer its own governance and investment mandate.
An independent Primark with an online delivery capability could unlock a substantially larger addressable market, particularly as rivals Shein and Temu continue to gain ground among price-sensitive shoppers.
Primark’s like-for-like sales fell 2.7% in the first half of ABF’s financial year to February 2026, with weakness most pronounced in Europe, highlighting the urgency of finding new growth levers.
ABF shares closed Friday’s session trading at 1,794.5p — down significantly from their 52-week high — giving the group a market cap of approximately £12.6 billion.
The stock trades on a forward P/E of just 11.4 times, leaving room for a meaningful re-rating if online delivery gains traction.
Analysts have a consensus price target of 1,873p, with bulls placing fair value as high as 2,200p.
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