Consumer perception of Primark is shifting as competitors like Temu and Shein gain market share, leading some to view Primark's prices as relatively high.
Primark, once the reigning champion of low-cost retail, is now facing considerable challenges in maintaining its customer base. Recent analyses indicate that the company has raised its minimum prices by 33% between 2023 and 2025, which is contributing to a change in consumer sentiment. As competitors such as Temu and Shein capture an increasing portion of the market, customers are beginning to view Primark as expensive, contrary to its traditional image as a budget-friendly option.
The circumstances surrounding Primark are becoming increasingly complex, as forecasts for 2026 suggest a decline in profits below previously expected levels. In light of these challenges, the parent company, AB Foods, is exploring the possibility of spinning off Primark to assess its viability as an independent entity. This move indicates a significant shift in strategy as the retail landscape evolves, impacted heavily by the rise of digital and fast-fashion alternatives.
Historically, Primark has maintained the perception of unbeatable prices, but these are becoming harder to sustain amid competition from online platforms that offer trendy apparel at lower prices. Analysts highlight that the prices for Primark’s offerings are no longer as attractive as they used to be, emphasizing the need for the company to adapt in order to retain its customer base and reinvent its brand identity in a challenging retail environment.
