Primark is under pressure from Shane and Temu to cut prices

“Primark is not cheap anymore.”

That’s what I hear consumers say when I ask them if they shop at the fast fashion giant.

“It’s definitely become more expensive,” says 19-year-old student Ishal Malik as she browses the jewelery at Primark with a friend.

But that could change. Primark announced on Monday that it is reducing prices on hundreds of clothing items, including jeans, jumpers and socks.

“It’s the kind of headline you’d expect from M&S or Next,” said retail analyst Natalie Berg, describing the price cut as surprising from such a low-cost retailer.

“You don’t want to join a race from the bottom,” she says. “But when Sheen sells dresses for £3 you have to respond, don’t you?”

Primark, which has more than 190 UK stores, has seen a decline in like-for-like sales, a key metric in the retail industry.

The price cut announcement comes ahead of plans by parent company Associated British Foods to float the business on the London Stock Exchange next year.

The level of competition between fashion retailers has “improved dramatically” in the past few years, and Chinese online marketplaces Xin and Teemu now compete for Primark’s customers, says Berg.

But there’s also competition from other online retailers like TikTok Shop and Vinted, she says.

By slashing prices on some staples, Primark hopes to appeal to shoppers with lower-priced foods, in the same way that supermarkets attract customers with cheaper milk and bananas, says Berg.