Primark ends digital partnership with Asos

Primark has decided against launching its own e-commerce site and has ended its digital partnership with Asos.

The UK discount chain sold products on Asos.com for 12 weeks, allowing it to sidestep the profit-busting costs of deliveries and returns.

Though collections it offered through the website sold out, John Bason, finance director of Primark’s parent company Associated British Foods, said venture was only a "fact finding mission."

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Continuing, he stated Primark will look into developing a "more consumer focused" website, but it will not sell clothing.

Retails analysts have suggested fees charged by Asos for selling Primark clothes, in addition to competition from other e-retailers, may have made the experiment not profitable enough to continue.

Last week, Associated British Foods said it expects Primark’s full-year sales to be 22% higher than in 2012, helped by warm weather in July and August, the recovery of the Euro, a decrease in the price of cotton and fewer merchandise discounts.
 

 

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