Primark is reducing prices on hundreds of clothing items to compete with online retailers like Shein and Temu.

Primark announced on Monday that it is lowering prices on hundreds of clothing items, including jeans, jumpers, and socks. The move comes as the fast-fashion retailer faces increased competition from online marketplaces like Shein and Temu, as well as a recent decline in like-for-like sales across its more than 190 UK stores.

Strategic Pricing and Market Competition

Retail analysts suggest Primark is adopting a supermarket-style tactic by using low-cost staples to attract shoppers. The strategy aims to maintain the retailer's relevance in a market where competitors like Shein and Temu have established new price baselines. According to analysts, these online rivals benefit from efficient operating models and the absence of physical store costs. While Primark maintains that its business model focuses on buying at scale to keep costs low, the company has faced rising expenses related to fabric, energy, shipping, and wages. The price cuts are viewed by some analysts as a marketing exercise intended to drive foot traffic, with the expectation that customers will purchase additional items once in-store.

Broader Retail Context

The announcement precedes a planned spin-off of the Primark business by parent company Associated British Foods, which is expected to occur on the London stock market next year. Currently, approximately 85% of Primark's products are priced at £10 or less. Meanwhile, the fashion industry faces ongoing scrutiny regarding its environmental impact, with the United Nations noting that the sector is responsible for about 8% of global emissions. Shein, in particular, has faced criticism regarding its environmental footprint, factory working conditions, and allegations concerning product listings.