Primark announced on Monday that it would reduce prices by up to 29% across hundreds of clothing items, including jeans, jumpers and socks, according to a BBC report. The move is a direct response to growing competition from Chinese online marketplaces Shein and Temu, which have eroded Primark's traditional low-price advantage.
Price Cuts Amid Sales Decline
Primark, which operates more than 190 UK stores, has been experiencing a drop in like-for-like sales, a key retail metric. The price reduction announcement precedes parent company Associated British Foods' plan to spin off the business onto the London stock market next year, the BBC reported.
Retail analyst Natalie Berg told the BBC: "It's the kind of headline you'd expect from M&S or Next," noting that price cuts from such a low-cost retailer are surprising. "You don't want to join a race to the bottom. But when Shein is selling dresses for £3, you've got to respond, right?" Berg said.
Shein and Temu's Competitive Edge
The level of competition among fashion retailers has "evolved dramatically" over the past few years, Berg said. Shein and Temu are now competing directly for Primark's customers, alongside other online platforms like TikTok Shop and Vinted.
According to Mintel research from July 2025, cited by the BBC, 32% of women aged 16-34 who buy clothes online said they had shopped at Shein during the previous year. Low prices, abundant discount codes, and seemingly endless product pages feed into Shein's appeal, particularly among younger shoppers.
Berg explained that Shein and Temu can undercut traditional retailers because they do not pay for physical store locations, most of their packages are exempt from import duties, and they operate an efficient model with little unsold stock. However, the import duty exemption is set to end in October 2028, according to the BBC.
What Cross-Border Sellers Need to Know
For cross-border e-commerce sellers and marketplace operators, the Primark price cut underscores the intensifying competition in fast fashion. Sellers on platforms like Shein and Temu must monitor evolving regulatory landscapes, particularly the upcoming end of the de minimis import duty exemption in the UK. This change, effective October 2028, could increase costs for low-value shipments and alter competitive dynamics.
| Factor | Shein/Temu Advantage | Primark Response |
|---|---|---|
| Pricing | Dresses for £3; low baseline | Cuts up to 29% on key items |
| Store footprint | No physical stores | 190+ UK stores (cost disadvantage) |
| Import duties | Exempt until Oct 2028 | Subject to duties |
| Supply chain | Efficient, little unsold stock | Traditional retail model |
Primark says these new lower prices are here to stay, indicating a long-term pricing shift. Sellers should reassess their pricing strategies and supply chain efficiency to remain competitive. The pressure from Shein and Temu is not limited to apparel; it signals broader disruption across retail categories.
Consumer sentiment already reflects the shift. 19-year-old student Eshal Malik told the BBC: "It's definitely got more expensive" at Primark, comparing prices to Shein. Another shopper, Tasneem Jafar, who has been a Primark customer since age 16, now also orders from Temu every six weeks.
As the race to the bottom continues, cross-border sellers must focus on operational efficiency and be prepared for regulatory changes that could level the playing field.
