Claire vs Primark UK retail digital transformation 2025

Explore digital retail in the UK: Claire’s closures, Primark strategies, and the trends driving high street and online shopping in 2025

1. The way we shop is evolving faster than ever, and nowhere is this
more evident than in the UK high street. From Primark to Claire’s,
retailers are embracing new technologies to keep pace with shifting
customer expectations. One of the biggest changes? How we pay.

Payment platforms and payment processors are becoming
increasingly sophisticated, offering retailers more efficient, secure,
and flexible ways to accept payments online and in store. Gone are the
days when cash and card were the only options. Today, integrated
payments, digital wallets, Buy Now Pay Later, and even pay by link
services are reshaping how transactions take place. These innovations
not only make life easier for shoppers but also streamline operations
behind the scenes, helping retailers like Primark adapt to an industry
in flux.
Digital Success Stories: How Retailers Are
Adapting
Primark has made headlines with its bold digital shift. While many
retailers are scaling back omnichannel strategies, Primark has
expanded its click and collect services and launched its first customer
facing mobile app. Already live in Ireland and Italy, the app is set to
roll out in the UK within the next 18 months.

2. This app is more than just an online catalogue; it’s part of a wider
omnichannel approach designed to create a seamless experience
across digital platforms, mobile, and physical stores. By piloting the
app in two very different markets, Primark can test how shoppers
engage digitally and apply those learnings as it broadens its reach.
All this is happening against the backdrop of rising store closures
across the retail sector, a trend accelerated by economic pressures
and shifting shopping habits.
Why Are Retail Stores Closing?
Three key factors stand out:
1. Changing consumer behaviour: Shoppers are increasingly
bypassing the high street in favour of online giants such as
Amazon and Temu.

2. Economic strain: Inflation, higher interest rates, and tariffs are
pushing up costs across the board. Grocery prices have jumped
23% since 2021, while certain electronics categories could climb
by as much as 68%.

3. Strategic missteps: Too many retailers have treated physical
stores as purely transactional. Modern consumers expect
experiences, not just products.
Claire's Faces Stores Closing as Retailer Files for Bankruptcy
Fashion accessories chain Claire's has filed for bankruptcy in the US
for the second time as it struggles with fewer people buying its
products and online competition eating into profits.
Claire's is known for selling jewellery, colourful accessories such as
necklaces and bracelets, and is part of millions of young people's
memories for its ear-piercing services. It has about 280 stores in the
UK, down from 370 in 2018 when it filed for bankruptcy because it
was unable to repay a loan. Claire’s operational difficulties and
missteps, the rise of e-commerce, and the decline of the mall were
particularly challenging.

3. Most Claire’s customers are young individuals and rely on their
parents or caretakers to bring them to the stores so that they can see
and touch the company’s products. Accordingly, the retail giant
struggled to create an online website that could compare to the tactile
shopping experience that is so vital for its young customers.
For a closer look at how Claire’s and Primark are taking very different
approaches to digital transformation in the UK retail sector, check out
Claire vs Primark: Lessons in digital transformation for UK retail in
2025 and beyond.
E-commerce Platforms Driving Retail
Transformation
Not all the news is gloomy. Platforms like Shopify and WooCommerce
have democratised e-commerce, giving businesses of all sizes access
to professional grade tools.
● Shopify powers over 5.5 million stores worldwide, offering drag-
and-drop design, app integrations, and seamless social media
connections.

● WooCommerce, meanwhile, fuels more than 4.6 million
websites. As an open source WordPress plugin, it provides
flexibility for businesses looking for tailored solutions.
Both platforms support integrated payments and alternative payment
methods, allowing merchants to sell across social media, WhatsApp
Business, and even phygital (physical + digital) spaces.
The Changing Landscape of Shopping in
2025
Shopping today is no longer neatly divided between online and in
store. Instead, we’re entering the “phygital” era, where both worlds
blend seamlessly.
Social media has become a discovery engine, while WhatsApp has
evolved into a full business tool. Messaging based commerce is

4. booming, driven by consumers’ desire for frictionless, personal
interactions. At the same time, open banking is redefining payment
solutions, offering faster, cheaper, and more secure alternatives to
traditional cards.
Digital Payments Are Powering Retail
Innovation
Open Banking in 2025
The UK has been an early adopter of open banking, with usage
continuing to grow among both consumers and small businesses. By
enabling payments directly from bank accounts, these systems cut out
the middleman, making transactions simpler and more secure.
Some standout players include:
● Atoa – instant bank-to-bank payments that are cheaper than
card processing.
● Wonderful – easy, stress-free payments approved directly in
your banking app.
● TrueLayer – enterprise grade payment processors with robust
API tools.
These solutions address long standing frustrations for both customers
and retailers, from high transaction fees to clunky checkout processes.
Whether it’s through integrated payments in an app or a quick pay by
link option, the goal is the same: speed, security, and convenience.
Conclusion: The Power of Open Banking and
Beyond
The retail world in 2025 is more dynamic, interconnected, and
customer-focused than ever. Open banking and other modern
payment solutions are reshaping how businesses engage with their
customers, while alternative payment methods and digital first
strategies are becoming essential rather than optional.

5. For shoppers, this means more choice and a smoother experience. For
retailers, it’s about future-proofing operations, ensuring they can not
only survive but thrive in an increasingly digital world.