“Primark isn’t that cheap anymore.”
I keep hearing shoppers say this when I ask them if they shop at the fast-fashion giant.
“It’s definitely gotten more expensive,” says 19-year-old student Eshel Malik as she browses jewelery in Primark with a friend.
But that’s probably about to change. Primark said on Monday it was reducing prices on 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 a price cut by such a low-cost retailer is surprising.
“You don’t want to get involved in a race to the bottom,” she says. “But when Sheen is selling clothes for £3, you’ve got to respond, right?”
Primark, which has more than 190 UK stores, is experiencing a decline in like-for-like sales, a key measure in the retail industry.
Increases in the price of clothing, minimum wages, shipping and energy costs and a focus on overall higher standards have all contributed to the rising price of clothing for companies like Primark in recent years.
The price cut announcement comes ahead of parent company Associated British Foods’ plans to debut on the London Stock Exchange next year.
Berg says the level of competition between fashion retailers has “grown dramatically” over the past few years, and Chinese online marketplaces Shein and Teemu are now competing for Primark’s customers.
But she says there’s also competition from other online retailers like TikTok Shop and Vinted.
Berg says that by cutting the prices of some core items, Primark is probably hoping to lure shoppers with lower-cost staples, in the same way that supermarkets attract customers with cheap milk and bananas.