"Primark isn't as cheap any more." It's a refrain retail analysts and shoppers alike have been muttering for months. But that narrative may be about to shift. On Monday, the fast-fashion giant announced it was lowering prices by up to 29% across hundreds of clothing items, including jeans, jumpers and socks.
"It's the kind of headline you'd expect from M&S or Next," says retail analyst Natalie Berg, explaining that such deep cuts from a low-cost retailer are unusual. "You don't want to join a race to the bottom," she adds. "But when Shein is selling dresses for £3, you've got to respond, right?"
“Primark cuts prices up to 29% on hundreds of items amid fierce competition from Shein and Temu.”
The price cuts come as Primark, which operates more than 190 UK stores, faces a drop in like-for-like sales. Competition from ultra-cheap Chinese online marketplaces Shein and Temu, along with TikTok Shop and Vinted, has "evolved dramatically" in recent years, Berg says. By slashing prices on core items, Primark is hoping to woo shoppers with low-cost staples — the same tactic supermarkets use with cheap milk and bananas.
Shoppers have certainly noticed the shift. "It's definitely got more expensive," says 19-year-old student Eshal Malik, browsing jewelry at a Primark store. She says she now buys going-out tops for less than £10 on Shein, which has become the new baseline for low prices. Tasneem Jafar, 32, from Salford, has shopped at Primark since she was 16 — but now she also orders from Temu every six weeks, picking up three or four new pieces each time.
The announcement precedes parent company Associated British Foods' plan to spin off Primark onto the London stock market next year. Whether the price cuts can reverse the sales decline remains to be seen, but for now, Primark is betting that lower prices are the best defence against the online competition.