Image source, Mike Kemp/In Pictures via Getty Images Image caption, Primark said on Monday it would reduce prices by up to 29% across hundreds of items By Grace Dean Published 6 hours ago "Primark isn't as cheap any more." It is something I keep hearing shoppers say when I ask them whether they shop at the fast-fashion giant. "It's definitely got more expensive," says 19-year-old student Eshal Malik as she browses the jewellery at Primark with a friend. But that might be about to change. Primark said on Monday that it was lowering 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," says retail analyst Natalie Berg, explaining that price cuts like this from such a low-cost retailer are surprising. "You don't want to join a race to the bottom," she says. "But when Shein is selling dresses for 3, you've got to respond, right?" Primark, which has more than 190 UK stores, has been experiencing a drop in like-for-like sales, a key measure in the retail industry. The announcement of price cuts comes ahead of parent company Associated British Foods' plan to spin off the business onto the London stock market next year. The level of competition among fashion retailers has "evolved dramatically" over the past few years, and Chinese online marketplaces Shein and Temu are now competing for Primark's customers, says Berg. But there is also competition from other online retailers like TikTok Shop and Vinted, she says. By slashing prices on some core items, Primark is likely hoping to woo shoppers with low-cost staples, in the same way that supermarkets attract customers with cheap milk and bananas, Berg says. Image caption, Primark says these new lower prices are here to stay When Tasneem Jafar wants to buy new clothes, the first place she looks is Primark. The 32-year-old from Salford has been shopping at the fashion retailer since she was 16, picking up jeans, T-shirts and beauty products. But for the past few years, Tasneem has also been buying clothes from Temu. Roughly every six weeks, she orders three or four new pieces of clothing from the retailer, she says. For student Eshal, part of the reason Primark feels more expensive is because she knows how low prices are at Shein. She says she buys going-out tops for less than 10. Image source, Mike Kemp/In Pictures via Getty Images Image caption, Shein operates primarily online but occasional short-term pop-up shops appear on High Streets Temu and Shein have been able to undercut traditional retailers like Primark because they do not pay for physical locations, most of their packages are exempt from import duties though this exemption is set to end in October 2028 , external - and they have an efficient operating model that leaves them with little unsold stock, says Berg. Currently low Shein prices are seen as the new baseline, Berg says. And they are luring in younger shoppers. According to Mintel...
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