"Primark isn't as cheap any more." It's a refrain retail analyst Natalie Berg is hearing more often. And the fast-fashion giant appears to have listened. On Monday, Primark announced it was lowering prices by up to 29% across hundreds of items, including jeans, jumpers and socks.
Berg, describing the move as "the kind of headline you'd expect from M&S or Next," said such cuts from a low-cost retailer are surprising. "But when Shein is selling dresses for £3, you've got to respond, right?" she added.
“Primark reduces prices on hundreds of items as cheap Chinese rivals Shein and Temu lure budget shoppers.”
The price war comes as Primark, which operates more than 190 UK stores, has experienced a drop in like-for-like sales. The retailer has been grappling with rising costs – fabric, minimum wages, shipping and energy – that pushed prices higher in recent years. Now, Chinese online marketplaces Shein and Temu, along with TikTok Shop and Vinted, are competing for Primark's budget-conscious shoppers, Berg noted.
Student Eshal Malik, 19, browsing jewellery at Primark with a friend, said the store "definitely got more expensive" – partly because she knows how cheap Shein is. She buys going-out tops there for less than £10. Tasneem Jafar, 32, from Salford, has been a loyal Primark shopper since 16 but now orders from Temu roughly every six weeks.
By slashing prices on core staples, Primark is borrowing a supermarket tactic – using cheap milk and bananas to lure customers, Berg said. The retailer said the lower prices are here to stay. The announcement comes ahead of parent company Associated British Foods' plan to spin off Primark onto the London stock market next year.
The shift in strategy may help Primark regain ground, but competition is only intensifying. Shein's exemption from import duties on most packages is set to end in October, which could level the playing field.