Primark Finally Launching Home Deliveries

 

Primark has said it plans to launch a home delivery service in Britain, four years after it made its first foray into e-commerce. The retailer did not say when it expects to launch the service, but it has bought a warehouse in Sheffield from to enable it to ship products to homes. The company said there was "opportunity for profitable growth" through home deliveries, which could help boost trade after Primark reported subdued sales following the recent hot weather. Analysts said the decision to offer home delivery after years of resistance - including through the pandemic - indicated that Primark was facing major challenges from ultra-fast-fashion brands such as Shein. Primark did not sell goods online until 2022, when it launched a click-and-collect service which meant shoppers still had to travel to pick up their purchases. The fast-fashion chain is struggling to compete with brands such as Shein and Boohoo, as well as alternative platforms such as TikTok Shop and Vinted, and in July said it was lowering prices on hundreds of clothing items. Retail analyst Julie Palmer said that "Primark has been playing catch up for years" and launching home deliveries "is as much about defence as growth". The brand will need to absorb additional costs of returns, which tend to be higher than in-store purchases as customers cannot try clothes on before buying them.

BBQ - Do you think Primark are too late to move fully into e-commerce?

Primark Online

Jigsaw Sales Climb

Demand for mindful activities like completing puzzles has led to a spike in jigsaw sales, one firm says. The trend has prompted Great British Jigsaws, founded online in 2020 by a husband and wife team, to open a physical store. The Stafford-based firm's operations director said: "There's been a massive movement, I feel, with people wanting to turn away from digital, people wanting to escape their screens." Commenting on the trend, games expert Christopher Headleand said: "People aren't necessarily rejecting screens, but they are proactively searching for balance." An example of what is driving sales, she said, came from an older customer who explained she and her friends were completing jigsaw puzzles as their "dementia prevention". Prof Headleand, head of the games institute at the University of Staffordshire, continued: "As more and more of our lives is screen-dominated, then the ability to escape from that and do something different is becoming more important."Part of the joy of a jigsaw was the tactile nature of it, something that is not replicated in the same way in a digital game, he added.

BBQ - How important is it for business to adapt to social changes?

Jigsaw Boom

Joybuy Launches in UK

A Chinese online retailer that is seeking to challenge the likes of Amazon is launching in the UK. JD.com announced its new Joybuy platform will run from distribution sites in Milton Keynes and Luton. The company sells technology, home appliances, beauty products, homewares and groceries. The move comes after the £30bn e-commerce firm pulled out of talks to buy Currys in 2024 and Argos last year. US and Hong-Kong listed JD.com is China's largest retailer by revenue. It said it would offer next-day delivery to about 17 million UK households from its launch. Bosses said the business planned to establish itself in the UK for "a long time" and they believed a combination of its product range, value and convenience would entice new customers. Matthew Nobbs, managing director of Joybuy UK, said the firm was confident about its growth prospects in the country. The company is simultaneously launching in six new European markets, with the others being Germany, the Netherlands, France, Belgium and Luxembourg.

BBQ - Is it possible for Joybuy to rival Amazon?

JoyBuy

Deliver Who?

 

Independent restaurants have accused global corporations of being "sneaky" and "a killer" to family businesses by masquerading as indies on delivery apps. Chain restaurants including Pizza Hut, TGI Fridays, Frankie & Benny's, Las Iguanas and Barburrito have brands on apps such as Deliveroo and Just Eat, giving them different names and the appearance of being small or independent businesses. Just Eat, Deliveroo and Uber Eats all said virtual brands could be utilised by any business, including independents. It added that it was transparent with customers as they could see the address of where they were ordering from, "to help them make informed choices". Bird Box and Stacks were from Frankie & Benny's, Mother Clucker was TGI Fridays, Wing Street was Pizza Hut, Hot Chick was Coyote Ugly and Badass Burritos was Barburrito. Independent restaurants want to see legislation about transparency around what kitchen people's food comes from and the parent company behind it.

BBQ - Do you think virtual brands should declare themselves to be actually a big chain?

Deliverwho?

France vs Shein

The world's fashion capital just became the latest battleground in the war against ultra-fast fashion. On the same day Shein opened its first permanent physical store inside a historic Paris department store, the French government announced it was initiating proceedings to suspend the company's entire online platform in the country. The official catalyst for the suspension was the discovery of illegal weapons and highly controversial, childlike sex dolls listed on Shein's third-party marketplace, which authorities stated were in violation of French law. This sudden escalation compounds the existing fury from French politicians, luxury brands, and environmental groups who have long targeted Shein over its alleged poor labour practices and massive environmental footprint. The juxtaposition of excited shoppers queuing to enter the new store while police patrolled outside amidst anti-Shein protestors highlights a powerful consumer dilemma: the allure of incredibly low prices versus the growing awareness of the ethical and legal costs associated with ultra-fast e-commerce giants. For France, this move is not just a consumer protection measure; it’s a strong declaration in defense of the values, quality, and domestic retail sector of the nation's treasured fashion industry.

BBQ - To what extent should the ethical obligations of a global retailer like Shein take priority over its objective to maximise profit?

France vs Shein

M&S Online Disruption

 

Marks & Spencer has suffered a "bruise" to its reputation after it was forced to stop taking online orders following a cyber attack, an analyst has said. The retail giant has paused orders on its website and apps since Friday as it attempts to restore operations. But analysts say M&S stands to lose out if the problem is not resolved quickly, with shoppers likely to turn to rival brands when buying summer clothes. Kate Hardcastle, consumer specialist at Insight with Passion, said the incident was "a bruise to M&S's trusted brand image".However, she added that because M&S had responded quickly and been open with its communication the long-term damage should limited. About a third of the retailer's clothing and household goods' sales in the UK come from its online operations. Natalie Berg, retail analyst at NBK Retail, said such incidents "erodes consumer trust in the brand". Customers began reporting problems last weekend - with people struggling to use contactless payments, click & collect, and gift cards - and on Tuesday the retailer confirmed it was facing a "cyber incident". Then on Friday M&S said it was pausing taking orders through its UK & Ireland websites and apps and some international websites. With warmer weather due this week, and shoppers turning their thoughts to summer, analysts said M&S could be missing out on sales at a critical time, as people were likely to turn to rival retailers to get what they want. M&S's sales and profits have improved in recent years and it has been seeking to expand its online operations. Last year, out of £3.9bn of sales in its clothing and home business, nearly £1.3bn came online.

BBQ: Would an issue like this cause you to loose trust in a brand? Why is this particularly important to M&S?

M&S Cyber Attack