The discount retail model is simple yet effective, relying on high volume and low margins. The age-old adage “If it ain’t broke, don’t fix it” comes to mind.
The model does not traditionally translate to ecommerce, with delivery costs often higher than the products themselves. Primark’s online absence is a key example, with its margins seemingly too thin to support profitable ecommerce.
Peter Williams, former chairman of Asos, Boohoo and Superdry, told Retail Gazette, ““Given the Primark low pricing and narrow gross margin structure, it is difficult for the online channel to be profitable.”
