Fashion retailer Primark said it plans to offer home delivery services in Britain, aiming to boost growth and complement its store-led model as competition in the fashion market intensifies.

Primark, which is part of conglomerate Associated British Foods, said it now sees an opportunity for profitable growth through the home-delivery channel.

The brand didn't disclose a date for the launch, but said it had acquired a fulfillment facility in Sheffield.

"Primark has made significant progress in developing its digital capabilities," it said Thursday, adding that it intends to continue to strengthen its click and collect service.

Primark is expected to report lower organic sales this year, at a time when fashion brands are facing fierce competition from the likes of Shein, Temu and online secondhand retailer Vinted.

For fiscal 2026, which runs through Sept. 12, AB Foods expects Primark sales to rise around 2%. However, it anticipates a decline of around 2.6% on a like-for-like basis. The company flagged a challenging consumer environment in most markets.

The company has always shied away from offering full online shopping, arguing that low price-point items are uneconomical to send, head of markets at AJ Bell Dan Coatsworth said in a note.

"While physical stores remain relevant, online shopping is well established and Primark clearly had no choice but to adapt to the modern retail world," Coatsworth said.

Other fashion brands, such as Sweden's H&M and British rivals ASOS and Boohoo, are also trying to differentiate themselves in what is a highly crowded market, while coping with weakened global consumer sentiment due to the current geopolitical and economic environment.

For its part, Spain's Inditex said Wednesday that it continues to focus on improving the shopping experience both at its stores and on its online platforms. The fashion giant has been refurbishing stores at its flagship label Zara, which has positioned itself further upmarket, in an effort to draw consumers back to physical shops.

AB Foods is in the process of splitting into two, separating Primark from its food operations, a move that is expected to be completed in December next year.

The launch of the home-delivery channel gives Primark "a massive opportunity to accelerate sales growth," which could help attract a bigger pool of investors, Coatsworth said.