Value positioning: what Primark’s dip teaches SMEs

Primark doesn’t issue profit warnings for fun. When a retailer built on “cheap and cheerful” has to publicly recommit to being a “value leader”, that’s a signal that value messaging is fragile—and that customers can change what they think you stand for faster than you can change your stock.

In early January 2026, Associated British Foods (ABF) reported Primark’s UK sales growth at 3% over 16 weeks (to 3 January), with like-for-like growth of 1.7%, and flagged that group adjusted operating profit is now expected to fall below last year. Primark even gained market share, yet still felt the need to warn on profit. That combination matters: it shows how brand positioning, price perception, and channel experience can squeeze profit even when sales are moving.

This post is part of our British Small Business Digital Marketing series, and I’m going to take a firm stance: most small businesses under-invest in clarity. They chase tactics (more posts, more ads, more “campaigns”) when what they actually need is a sharper promise—and proof that customers believe it.

Why Primark’s profit warning matters to small businesses

A profit warning is what happens when the business is saying, “The numbers aren’t matching the story we told ourselves.” For SMEs, that usually comes later and hurts more because there’s less cash buffer.

Primark’s update highlights three realities that apply to a five-person business just as much as to a multinational:

• Sales growth isn’t the same as profitable growth. If you’re spending more to acquire each customer, discounting harder, or carrying more operational cost, revenue can rise while profit drops.
• Price perception is a marketing asset. It’s built slowly and lost quickly.
• Customer engagement is now a channel strategy issue, not just a “social media” issue. Primark called out digital customer engagement and click-and-collect in the UK—because experience affects conversion and repeat purchases.

Here’s the uncomfortable bit: if a brand as well-known as Primark has to remind people it’s good value, your small business definitely does.

Lesson 1: “Value” is not “cheap” (and you must choose your lane)

Primark’s language—cementing “value leader” status—sits in a crowded competitive space. Tesco has been pushing value hard; discounters keep pressure on; online competition is relentless. When the market is noisy, “value” needs definition.

Define value in a sentence customers would repeat

If you say you’re “great value”, you’re forcing customers to guess why. Value can mean:

• Lowest price
• Best quality for the price
• Saves time
• Fewer risks (guarantees, warranties)
• Better outcomes (results, reliability)

Action for SMEs (15 minutes): Write one sentence that finishes this:

“People choose us because we’re the easiest way to get ____ without ____.”

Examples:

• “People choose us because we’re the easiest way to get a compliant website without agency-level fees.”
• “People choose us because we’re the easiest way to get weekly family meals without wasting ingredients.”

Don’t mix “fashion” and “value” unless you can prove both

Primark’s recent marketing has been described as leaning too much into fashion, then rebalancing towards price. That’s a classic positioning wobble: you can absolutely be stylish and affordable, but the customer must feel it immediately.

For a small business, mixed messages show up like this:

• Instagram says premium, Google Ads says bargain.
• Your homepage says “bespoke”, your pricing page screams “discount”.
• Your staff promise “fast”, your delivery times say otherwise.

Rule I use with clients: if your positioning needs a paragraph to explain, it’s not positioning. It’s a justification.

Lesson 2: Price perception is measurable (and fixable)

Primark’s update mentions investments to improve price perceptions. That’s marketing-and-merchandising working together: signage, product mix, promotions, social content, and store experience all reinforcing the same thought.

Small businesses can do the same—without big budgets—by measuring what customers think you cost.

Run a “price perception” check in your funnel

You need to know where customers start hesitating:

1. Search results: does your title/meta imply affordability, premium quality, or speed?
2. Landing page: is your price anchor visible early (or are you hiding it)?
3. Offer structure: do you give a clear “good / better / best” choice?
4. Checkout or enquiry: are there surprise costs (delivery, add-ons, minimums)?

Quick diagnostic: ask 10 recent customers two questions:

• “Before you bought, what did you think we’d cost?”
• “What convinced you we were worth it?”

If the answers don’t match what your website claims, you’ve found your next marketing task.

Use selective pricing, not constant discounting

Primark’s Major Finds initiative (highlighting must-have items) is effectively selective pricing plus attention: spotlight a set of products that act as proof-points.

For SMEs, that might be:

• A “from £X” entry service that’s profitable and popular
• A fixed-price bundle that removes uncertainty
• A seasonal offer (January is perfect for reset messaging: planning, decluttering, health, home improvements)

What I’ve found works: discount less often, but explain value more often. A steady drumbeat of “we’re cheaper” trains customers to wait.

Lesson 3: Engagement isn’t vanity—it's distribution

Primark called out growing digital engagement and rolling out click-and-collect across all 187 UK stores. That’s not a social media flex; it’s a distribution improvement that reduces friction.

For small businesses, digital engagement should do one of three jobs:

• Bring qualified traffic (SEO/content)
• Convert (landing pages, offers, trust)
• Bring customers back (email, SMS, retargeting, community)

Build a simple “engagement ladder”

If you’re posting content without a next step, you’re renting attention and giving it away.

A practical ladder:

1. Short-form content (Reels, TikTok, LinkedIn posts)
2. One useful page (blog post, guide, calculator, checklist)
3. Lead capture (email sign-up with a clear benefit)
4. Nurture (3–5 email sequence with proof + next step)
5. Conversion (book a call, buy online, visit the shop)

You don’t need more platforms. You need fewer steps that actually connect.

January 2026 angle: make “value” tangible

January customers are cautious. Christmas spending has just happened, and confidence is often shaky. “Value” content that performs well right now tends to be:

• Clear pricing examples (“3 options and who each is for”)
• Comparisons that respect the reader (“If you want X, choose this; if you need Y, choose that”)
• Proof (reviews, before/after, case studies, guarantees)

The reality? People buy value when they can explain it to someone else. Your marketing should give them that language.

Lesson 4: Profit warnings start with fuzzy targeting

The RSS story notes weaker consumer confidence in Europe and volatility in the US affecting footfall. Macro conditions change. Your targeting must be strong enough to survive them.

For SMEs, the fastest way to waste budget is broad targeting with vague creative:

• “We help businesses grow.”
• “Quality service at great prices.”
• “Trusted local company.”

None of those tell the algorithm (or the human) who you’re for.

Tighten targeting using a “who/when/why” grid

Fill this out for your core offer:

• Who is it for? (industry, life stage, job role, location)
• When do they buy? (trigger moments: moving house, hiring, tax year-end)
• Why you over alternatives? (speed, certainty, specialism, outcome)

Then reflect it everywhere:

• Google Ads: keyword + landing page headline
• SEO: service pages built around those triggers
• Social: content that speaks to the moment of need

If you do one thing after reading this, do this grid. It stops “random acts of marketing”.

A practical mini-plan: become the “value leader” in your niche

You don’t need Primark’s budget to own value in your corner of the market. You need consistency and proof.

1. Pick your value definition (lowest price, best outcome, least risk, fastest delivery)
2. Create 2–3 proof assets
   • one case study with numbers
   • one comparison page (your option vs alternatives)
   • one “how pricing works” explainer
3. Design one flagship offer (bundle, package, or entry product)
4. Build one lead path (content → email capture → nurture → conversion)
5. Measure only what matters
   • cost per lead
   • lead-to-sale rate
   • repeat purchase rate

If your numbers are slipping, don’t start by “doing more marketing”. Start by making your value easier to understand.

What to do next (before your own numbers wobble)

Primark’s story is a reminder that positioning is not a slogan; it’s a performance. When customers aren’t sure what you stand for, they hesitate. When they hesitate, you discount. When you discount, you lose profit.

If you want a quick win this week, rewrite your homepage headline so it clearly states: who you help, what outcome you deliver, and what makes it good value. Then update one service page to back it up with proof.

What’s the one part of your marketing right now that customers still have to guess—your price, your quality, or why you’re different?