Primark 2025 growth forecast has been officially slashed, signaling significant challenges for the fast-fashion retailer. The company’s parent, Associated British Foods (ABF), announced a reduction in its growth expectations from mid-single-digit to low-single-digit increases. This downward revision follows a 6% drop in like-for-like sales in the UK during the crucial holiday period, revealing cracks in Primark’s traditional reliance on in-store traffic.
Primark 2025 Growth Forecast: UK Sales Take a Hit
Primark’s success has long been anchored in the UK, but the 2025 growth forecast presents a distinct picture. The company struggled during the 16 weeks leading up to January 4, 2025, as inflationary pressures and cautious consumer spending eroded its performance. Unseasonably mild autumn weather compounded these issues, reducing demand for winter essentials and leading to a 6% decline in like-for-like sales across its core UK and Ireland markets.
Despite challenges in its home territory, Primark reported overall growth of 2%, largely thanks to its international expansion strategy. The US and continental Europe played key roles in offsetting domestic struggles, with new store openings driving sales to £3.3 billion for the period. However, this modest growth pales in comparison to the gains seen by competitors such as Marks & Spencer and Next.
Primark 2025 Growth Forecast Highlights E-Commerce Gaps
Primark’s 2025 growth forecast has reignited criticism of its limited digital strategy. While competitors have embraced e-commerce as a key driver of sales, Primark continues to prioritize its physical stores. The retailer offers a click-and-collect service, but its refusal to adopt home delivery limits its ability to compete with rivals who excel in omnichannel retail.
For example, Next’s online platform has been instrumental in capturing market share, offering personalized shopping experiences and convenient delivery options. Similarly, Marks & Spencer has successfully blended online and in-store experiences, creating a seamless customer journey. In contrast, Primark’s focus on in-store traffic increasingly feels outdated, particularly as consumer preferences shift toward digital convenience.
Analysts agree that Primark’s reluctance to invest in e-commerce is a major obstacle. “The Primark 2025 growth forecast reflects the dangers of ignoring digital trends,” remarked retail expert Sarah Bennett. “Today’s shoppers demand more than just low prices—they expect flexibility, convenience, and online options.”
Financial Fallout from Primark 2025 Growth Forecast
The downgraded Primark 2025 growth forecast has also impacted ABF’s profit outlook. Analysts now predict a 2% drop in consensus profits for the 2024/25 fiscal year, revising operating profit projections to £1.863 billion. This follows a decline from £1.998 billion in the previous year. The market response was swift, with ABF shares falling by 3.6% after the announcement.
Future Strategy: A Balancing Act
While the Primark 2025 growth forecast highlights challenges, the company has several paths forward. Primark’s focus on international expansion continues to be a positive aspect, as it plans to open more stores in high-growth markets such as the US and Europe. Primark is also strengthening its value-for-money offering, especially in the highly competitive womenswear category.
However, analysts stress that these efforts must be paired with a digital transformation. “Without a robust e-commerce strategy, Primark risks losing relevance in the modern retail landscape,” said Mark Richards, a retail consultant. “To secure its future, the brand must embrace home delivery, invest in digital infrastructure, and rethink its omnichannel approach.”
Conclusion
The revised Primark 2025 growth forecast serves as a crucial reminder for the fast-fashion giant. While its international expansion strategy shows promise, the company’s inability to adapt to digital retailing leaves it vulnerable. As inflationary pressures and shifting consumer preferences reshape the market, Primark must modernize its operations to stay competitive.
Whether through enhanced e-commerce, an improved digital presence, or continued global growth, Primark’s ability to adapt will determine whether it remains a leader in fast fashion—or becomes an example of what happens when a retailer fails to evolve.