Business
Can Primark stay relevant, or is Shein taking over?
BBCPrimark has long been a staple of UK high streets, luring in shoppers with low-priced clothes, accessories and homeware.
But in its UK and Ireland stores, like-for-like sales – a key metric in the retail industry – were down 3.1% in the year to September, which it attributed to a “weak” consumer environment and fewer people buying winter clothes during last year’s mild autumn.
As online stores like Shein and Vinted continue to attract young shoppers, does Primark face a fight to remain relevant – or is it just fine?
“While the UK clothing market is seeing subdued growth, Primark has significantly underperformed the overall market,” says Tamara Sender-Ceron, an associate director at market-research agency Mintel, adding that it faces “increased competition”.
Some shoppers point out that online marketplaces like Shein and Temu have even lower prices, a huge range of products, and – crucially – home delivery, something Primark lacks.
At Primark’s biggest London store on Oxford Street, which BBC News visited this week, Serena Milius has just popped in with her 12-year-old daughter to look at pyjamas, socks and the new Stranger Things range.
Serena used to do most of her shopping at Primark – until Shein took over.
“Shein’s our main thing,” the 34-year-old finance manager from Tooting, south-west London, says.
She says her wardrobe is now 90% Shein, and goes to Primark for “little bits and bobs” like flipflops, candles, socks and cosmetics dupes.
Serena MiliusOthers tell the BBC they’d rather splash out on better-quality products. This includes Martha, a 23-year-old student in Leeds, who only shops at Primark for basics like T-shirts, socks, underwear and cotton buds. For other items, she turns to Weekday, Zara and independent shops.
“I like to buy more expensive items that I’m going to wear over the years,” she tells the BBC as she browses clothes in a Primark store with her mum. With Primark, “it’s not always a lasting item,” she says.
The store was busy when the BBC visited on a late Wednesday afternoon, with mainly female shoppers browsing alone or in pairs. Some said they’d gone out of their way to visit, others popping in after finding themselves in the area.
Some say they’re deterred by Primark’s huge, sprawling stores which can sometimes get very busy.
“I do not enjoy shopping in a Primark,” says Abbi Lily, a 24-year-old content creator from near Bournemouth. She describes the experience as “very overwhelming” and “overstimulating” and says it can be “impossible” to find things.
Abbi LilyShe used to buy most of her clothes from Primark, but feels it isn’t as cheap as it used to be. “They just don’t have the bargains as much anymore,” she says, echoing comments some other shoppers made to the BBC.
Though Abbi sometimes shops at Shein, she’s trying to become more “intentional” with her shopping and buy more second-hand items, including through Vinted and Depop.
A Primark spokesperson told BBC News that 85% of its products were £10 or under, and said it “continually benchmarks” its prices against competitors.
Shein uses AI to identify trends and launch “thousands of new styles daily”, says Ms Sender-Ceron at Mintel.
According to a survey by Mintel in May, 46% of UK women aged 16 to 34 had bought fashion items from Shein in the last 12 months.
It has held pop-up shops in London and this week opened its first permanent physical shop in a department store in Paris, with long queues of people waiting to get their hands on cut-price garments.
“You can buy anything from Shein,” said one shopper waiting in the French capital to visit on its opening day. “It’s such a cool thing for people my age who are struggling in this economy.”
Critics point to the environmental impact of fast fashion and working conditions in its factories. At the Paris launch, protestors gathered outside calling for a boycott of the brand.
Firas Abdullah/Anadolu via Getty ImagesShould Primark offer delivery?
With Shein specialising in delivering clothes to your door, Primark does offer click-and-collect services in its nearly 200 UK stores – but not deliveries.
Some high-street retailers have been struggling in the UK, but Primark has largely bucked the trend – it’s closing a store in Dartford, Kent, next year, which reports say will be its first store closure in a decade. It also opened dedicated Primark Home stores in Belfast and Manchester.
Primark relies on its customers shopping in bulk, Mr Stevenson says. “You might be going in for one thing, but you end up buying seven things that you hadn’t really thought about,” he says. This doesn’t happen as much with online shopping, he says.
Would Primark’s sales be boosted if it did offer delivery? Mr Stevenson is sceptical, saying “it doesn’t feel like they’re losing out by not doing that”, but that it could be an option in future.
“If you wanted to buy a couple of things from Primark for £5 each, are you going to pay 50% of that in delivery charge?” he asks. “Because buying £10 of stuff is going to cost me £5 to get it tomorrow.”
Primark’s spokesperson said that its online model was a “deliberate choice to streamline operations and pass the savings directly to customers”.
Jason Alden/Bloomberg via Getty ImagesThough Primark’s like-for-like sales in the UK and Ireland are down, “I absolutely don’t think they’re doing badly,” says Mr Stevenson, the Peel Hunt analyst. Its UK and Ireland market share has grown, according to data from market-research company Kantar.
And its total sales globally in the year to September were up 1% compared to the previous year as it opened more stores in Europe and the US.
For some shoppers, Primark will always have a hold on them. “I absolutely love Primark,” says Khloe Lightholder, a 34-year-old childcare worker from Essex.
She says Primark is “actually quite good quality for the price” and she visits every few months for a couple of hours, usually spending £200 or more on shoes, bags, perfume and homeware. She sets herself a monthly budget, “but every time I go to Primark that budget is out of the window”.
How much of a threat Shein and other budget retailers pose is an ongoing challenge, but it doesn’t feel like Primark’s brown shopping bags will disappear from our high streets any time soon.
Business
Nike shares fall 9% on weak outlook, expected 20% sales decline in China
A Nike logo is displayed at a Nike store in Austin, Texas, Feb. 5, 2026.
Brandon Bell | Getty Images
Shares of Nike fell in extended trading Tuesday after the retailer warned sales will fall for the rest of the calendar year, led by an expected 20% decline in its key China market during the current quarter.
Chief Financial Officer Matt Friend said during the company’s earnings call that Nike expects sales for its current fiscal fourth quarter to drop between 2% and 4%, compared with Wall Street estimates of a 1.9% increase, according to LSEG.
For the duration of the calendar year, Friend said, the company expects sales to fall by a low single-digit percentage, led by growth in North America and offset by declines in China. That outlook wasn’t comparable to estimates.
Nike beat expectations across the business on both the top and bottom lines for its fiscal third quarter, but its guidance left investors with more questions about how long its turnaround will take. Friend also cautioned that Nike’s guidance was based off of where the global economic picture stands today — and it could change given recent geopolitical volatility.
“We also recognize that the environment around us has become increasingly dynamic, and we could experience unplanned volatility due to the disruption in the Middle East, rising oil prices and other factors that could impact either input costs or consumer behavior,” said Friend. “We are focused on what we can control.”
Shares fell more than 8% in extended trading.
Here’s how the world’s largest sneaker company did for its fiscal third quarter, compared with estimates from analysts polled by LSEG:
- Earnings per share: 35 cents vs. 28 cents expected
- Revenue: $11.28 billion vs. $11.24 billion expected
The company’s reported net income for the three-month period that ended Feb. 28 was $520 million, or 35 cents per share. That’s a 35% decline from $794 million, or 54 cents per share, a year earlier. That plunge came as Nike’s gross profit margin slid 1.3 percentage points to 40.2%, “primarily due to higher tariffs in North America,” the company said.
Sales were flat at $11.28 billion, compared to $11.27 billion last year.
While Nike beat expectations on the top and bottom lines, it posted a mixed picture regionally. Nike’s largest market of North America continued to show steady growth, as revenue climbed 3% to $5.03 billion, but that was just shy of Wall Street’s expectations of $5.04 billion, according to StreetAccount.
Meanwhile, Nike’s Greater China market continued to shrink, with revenue down 7% to $1.62 billion during the quarter. Still, that total beat analyst estimates of $1.50 billion, according to StreetAccount.
Nike is continuing to work through a colossal turnaround under CEO Elliott Hill. About a year and a half into his tenure, Hill has made strides in repairing parts of the business, but has been clear that it’ll take time for the entire company to improve given the retailer’s scale and complexity.
He reiterated that expectation on Tuesday, saying in a news release that “the pace of progress is different across the portfolio.”
“The areas we prioritized first continue to drive momentum,” Hill said. “The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of NIKE.”
Friend said Nike’s turnaround efforts “will continue to impact results over the balance of the calendar year.”
Nike’s recovery was already coming at a tough time as a global trade war dented its efforts to improve profitability and drive sales from inflation-weary shoppers. But now the athletic company will have to contend with a new war in the Middle East that’s already led to rising gas prices and is expected to send consumer prices even higher, which could push shoppers to cut back on nice-to-haves like new clothes and shoes to save money elsewhere.
“We continue to be encouraged by the momentum in North America. We’ve got a strong order book for summer,” Friend said. “We’re seeing positive signs and sell through. We’re not seeing a consumer reaction to what’s going on in the Middle East at this point in time, in North America.”
Hill has focused in part on revitalizing Nike’s business with wholesale partners as opposed to direct sales on its website and in stores. Wholesale revenue climbed 5% to $6.5 billion.
Meanwhile, direct sales slid 4% to $4.5 billion.
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