Primark unlikely to continue online partnership with Asos


Primark has hinted that it is unlikely to continue its online partnership with Asos.

George Weston, chief executive of Associated British Foods, Primark’s parent company, said: “The trial has ended and we are exploring our options, but as you imagine, the margins are so small that it can be difficult to sell a £3 t-shirt when you’re spending the same amount just to ship it."

“The shipping costs for an online business is the key reason why online-only retailers can’t compete with us”.

The budget fashion retailer saw revenues rise 22 per cent to £4.27 billion in the year to September, with underlying profits up 44 per cent to £514 million.

This is in stark contrast to high-end rival Marks & Spencer, whose fashion sales have been on a steady decline for the past two years despite a fresh effort with its ‘Best of British’ collection this year.

Sales at Primark meanwhile were up 5 per cent on a like-for-like basis.

The retailer has also seen revenue generated through its European expansion effort, where 19 stores have opened this year. A further 20 store openings are planned for 2014.

Weston added that Primark will not be launching an e-commerce operation anytime soon, however, stating that customers would rather travel to their stores.

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