Primark and Asos tie-up to end
Primark’s brief life online will come to an end in the next few weeks, as the value business confirms it will not renew its deal with Asos.
Primark, who today revealed above-expectation set of annual results thanks to a strong second half of trading, has made select pieces of its collection available through the pure-play etailer since early June. The move was part of a “very limited trial”, which Primark was using to test the online waters.
However financial director John Bason told Drapers this would end in a matter of weeks, and that there were no plans to extend the deal or replace it with a different etailer. Sales had “certainly met expectations” but the trial was simply coming to an end, he added.
Primark similarly has no plans to launch a transactional website, although Bason said it was upgrading its digital platform to act as a “consumer friendly showcase for what Primark has to offer”.
Bason said: “We had always said it was about gaining market intelligence over what would sell well – a toe in the water if you like – but at this stage there are no plans either for a transactional website or for us to extend our deal with Asos.”
He added that Primark’s high street offer was “the driving force here”. Bason acknowledged that not having a transactional website could potentially limit Primark’s reach but insisted that with “extraordinary sales densities and footfall, real estate really works for us”.
“We drive footfall in shopping centres or parts of the streets we are on. We recognise that online sales are going but for Primark, the high street is our way of reaching our consumers. Some people have suggested we could see the death of the high street but that’s a remote possibility in our minds,” Bason said.
“Primark is part of the regeneration and renovation of the ever-changing high street. We see ourselves as a key part of the high street in attracting and generating footfall – what can be wrong with that?”