Primark said on Monday it was lowering prices on hundreds of clothing items, including jeans, jumpers and socks – cuts of up to 29% that one retail analyst called "the kind of headline you'd expect from M&S or Next".
The move comes as the fast-fashion giant faces mounting competition from ultra-cheap Chinese online marketplaces Shein and Temu, which have been luring away customers with £3 dresses and prices that undercut even Primark's. "When Shein is selling dresses for £3, you've got to respond, right?" said retail analyst Natalie Berg.
“Primark cuts prices on hundreds of items by up to 29% as it fights back against ultra-cheap Chinese online rivals Shein and Temu.”
For shoppers like 19-year-old student Eshal Malik, the shift is already evident. "It's definitely got more expensive," she said while browsing jewellery at Primark. Part of the reason it feels pricier is because she knows how low Shein's prices are: she regularly buys going-out tops for less than £10. Another customer, 32-year-old Tasneem Jafar from Salford, has shopped at Primark since she was 16 but now also orders from Temu roughly every six weeks.
Primark, which has more than 190 UK stores, had been experiencing a drop in like-for-like sales – a key retail measure. The rising cost of fabric, minimum wages, shipping and energy, along with a focus on higher standards, pushed up its prices in recent years. Now, by slashing prices on core items, the retailer is borrowing a classic supermarket tactic: using cheap staples – milk and bananas in a grocery store, jeans and socks here – to draw shoppers back, Berg explained.
The level of competition among fashion retailers has "evolved dramatically" over the past few years, Berg said, pointing not only to Shein and Temu but also to TikTok Shop and Vinted. The price cuts come ahead of parent company Associated British Foods' plan to spin off Primark onto the London stock market next year. Primark said these new lower prices are here to stay.