Primark is slashing hundreds of prices in a bid to regain customer loyalty as the cost of living crisis bites. The fashion retailer's move comes amid fierce competition from ultra-cheap online marketplaces like Shein and Temu, which are offering dresses for as little as £3.
Retail analysts believe Primark is adopting a 'supermarket tactic' by using low prices to lure shoppers into stores. This strategy follows a decline in like-for-like sales and increased pressure from online rivals that avoid overheads by operating solely online.
The competitive landscape has changed dramatically, with online-only models allowing competitors to minimise unsold stock. While this advantage is set to be reduced when import duties are reinstated in October 2028, online retailers continue to gain market share – particularly among younger shoppers. A survey from July 2025 found that 32% of women aged 16-34 had shopped at Shein in the past year.
The cost of living crisis is having a direct impact on UK households' discretionary spending, with consumers prioritising value for money and scrutinising every expenditure. Research suggests that approximately a third of clothing shoppers have bought clothes less frequently in the past 12 months due to financial pressures. Government support schemes offer some relief, but many are still struggling.
Primark's price cuts are accompanied by a focus on improving garment quality, fit, and style. This dual approach aims to address customer concerns that Primark has become more expensive or that better value can be found elsewhere – including high street retailers' own-brand ranges or second-hand markets like charity shops and Vinted.
For those struggling with the cost of living crisis, advice from organisations such as Citizens Advice and MoneySavingExpert often recommends budgeting, comparing prices, and exploring second-hand options for clothing and other essentials. However, the trend towards ultra-low prices set by online retailers is likely to continue exerting pressure on the high street, making it essential for retailers like Primark to adapt their strategies.