Value retail giant Primark has scotched rumours it plans to launch its own e-commerce site after pulling its fashion products from e-tailer Asos.
Primark said it would end the four month trial with Asos - which provided some wonderful publicity for both firms - in the next few weeks. It has also apparently dismissed rumours that it would launch its own site.
Primark said in June it hoped the trial would offer it some 'insight into online retailing'. The end of the trial has come as a surprise ahead of the key Christmas selling season and as other retailers wholeheartedly embrace online selling.
Middle market retailers including Marks & Spencer, John Lewis, Debenhams and House of Fraser have made online a key battle ground ahead of this Christmas.
At the same time, Primark confirmed plans to add another 1 million square feet of selling space and launch a store in Paris this December.
The decision seems to confirm the difficulties making money out of value fashion on the internet with the cost of postage and returns potentially wiping out margins. Primark may also be concerned that an online shop could cannibalise sales at stores with its brand so strong and still a key destination for most shoppers.
Primark said sales in the year to September increased 22 per cent. Like-for-like sales are about 5 per cent, well ahead of the market and despite a weak Spring when the weather in Britain was unseasonably cold.
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