Primark will launch a home delivery service in Great Britain by the end of 2027, Associated British Foods (AB Foods) chief executive George Weston confirmed on Tuesday, as the retailer prepares to separate from its parent group.

Weston told Reuters that the service would be introduced before the planned demerger in December 2027, marking the first time the group has publicly confirmed a launch timetable. AB Foods had previously said in September that home delivery would arrive in the future without specifying when.

"We're sure it will be incremental (for sales) and profitable," Weston told Reuters, referring to the expected financial contribution from the service.

The announcement comes as AB Foods reported a 14 per cent fall in adjusted operating profit to £1.508 billion for the year ended 12 September 2026. Group revenue declined by 1 per cent on a constant currency basis to £19.58 billion.

Primark's adjusted operating profit fell 12 per cent to £1 billion during the financial year, while like-for-like sales declined by 2.6 per cent. Total sales increased by 4 per cent to £9.8 billion, supported by new store openings across Europe, the US and franchise markets.

The retailer's performance reflected weaker consumer demand across several markets, although AB Foods said UK like-for-like sales had improved following efforts to reduce prices and strengthen its value proposition.

AB Foods said it expects another decline in adjusted operating profit and earnings per share in 2026/27, primarily because of further losses in its sugar business. Sugar losses reached £47 million in 2025/26 and are forecast to increase to between £70 million and £170 million in the current financial year.

The group expects Primark's adjusted operating margin to fall slightly to approximately 10 per cent in 2026/27, compared with 10.2 per cent in the previous year. Expansion across Europe, the US and franchise markets is expected to contribute around 4 per cent to sales growth.

In its outlook, AB Foods said it remained cautious about consumer sentiment, inflation and higher energy costs. Weston said the group would maintain its focus on financial performance and growth opportunities from capital investment.

The separation of Primark from AB Foods' food businesses remains on track for completion in December 2027. The demerger will leave Primark as a standalone retail business, while AB Foods retains its grocery, ingredients, agriculture and sugar operations.

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