The narrative that during the pandemic consumers have shifted to e-commerce and are unlikely to return to physical retail is being increasingly shot down by retail insiders. Yes, it sounds like a plausible story. But, no, it’s not likely to turn out that way. People claiming there’s an inevitable and permanent shift to ecommerce simply don’t understand what consumers enjoy about shopping, according to Paul Marchant, CEO of Primark. “Anyone who thinks that shopping in person is over or outdated would be naïve”, he told The Times. “All we can say confidently about the increase in online shopping during lockdown is that the shops were shut,” he said. Mr. Marchant explained that his company commissioned its own research about what was happening with its retail business during the lockdown. ” Even we were surprised at the findings. What we hadn’t realized was how central shops are to how people feel about a place.” <h3><b>Why E-commerce is Not an Option</b></h3> One of the key reasons that Primark and other low priced retailers have resisted e-commerce is because their margins are too low to cover the costs associated with e-commerce. Those being mainly shipping, fulfillment and restocking returns. Their customer base is unlikely to agree to pay shipping charges and for Primark to offer free shipping, they’d need to raise prices. “We have a strong digital and a rapidly growing social media presence, with currently 14 million followers. Our customers enjoy looking online at the latest offers, and coming into stores to buy. From time to time we will look at click-and-collect as one possible option to extend our customer service. However, there are no plans in the near future to trial click and collect,” according to John Bason, Finance Director of Primark’s parent company Associated British Foods, adding, "the cost to support home delivery can't be supported with our price points." <h3><b>A Tough Year, but Standing Strong</b></h3> Primark said autumn store closures meant it missed out on £430 million of sales, higher than a previous estimate of £375 million. However, it said sales since reopening, including in England this week, had "once again been very strong". Primark's loyal customers and the woes afflicting rivals such as Topshop owner Arcadia, which went into administration earlier this month, would continue to support its growth, said Susannah Streeter, and analyst at Hargreaves Lansdown. Analysts have said that the demise of several large UK retailers, along with retailers in other key markets, would free up prime retail locations that Primark could potentially secure - and at much more favorable rental rates. Primark still has 34 stores - fewer than 10% of its 389 outlets worldwide - closed across its global markets, including all outlets in Northern Ireland and Austria. Recently it opened new stores in the US, in Italy and its 50th store in Spain.