It's something shoppers keep saying: 'Primark isn't as cheap any more.' But that might be about to change. The fast-fashion giant announced on Monday it is lowering prices on hundreds of clothing items – including jeans, jumpers and socks – by up to 29%.
"It's the kind of headline you'd expect from M&S or Next," says retail analyst Natalie Berg, calling the move surprising for a low-cost retailer. "You don't want to join a race to the bottom," she says. "But when Shein is selling dresses for £3, you've got to respond, right?"
“Primark cuts prices on hundreds of items by up to 29% to compete with ultra-cheap Chinese rivals Shein and Temu.”
The price cuts come as Primark, which has more than 190 UK stores, has experienced a drop in like-for-like sales. The retailer has seen costs rise in recent years from fabric, minimum wages, shipping and energy, plus a focus on higher standards. But competition from ultra-cheap Chinese online marketplaces Shein and Temu – along with TikTok Shop and Vinted – has "evolved dramatically," Berg says.
Student Eshal Malik, 19, says part of the reason Primark feels more expensive is because she knows how low prices are at Shein, where she buys going-out tops for less than £10. Tasneem Jafar, 32, from Salford, has shopped at Primark since she was 16 but now also orders clothes from Temu roughly every six weeks.
By slashing prices on core items, Primark is likely hoping to woo shoppers with low-cost staples in the same way supermarkets attract customers with cheap milk and bananas, Berg explains. The announcement comes ahead of parent company Associated British Foods' plan to spin off Primark onto the London stock market next year.
Shein and Temu have been able to undercut traditional retailers because they do not have physical stores and most of their packages are exempt from import duties – though that exemption is set to end in October. For now, Primark's new lower prices – which the chain says are here to stay – are its answer to a market where the cheapest option increasingly lives online.