What: Primark has partnered with supply chain network design platform Kallikor to build digital twins of its distribution centres, so it can test alternative operating configurations before committing capital spend.

Why it is important: The partnership shows AI moving from execution into strategic supply chain planning, where advantage comes from building decision-making capability on a retailer's own operational data rather than from access to the technology itself.

Primark has partnered with supply chain network design platform Kallikor to create a simulation-led approach to strategic supply chain decisions. The collaboration starts with digital twins of Primark's distribution centres, allowing teams to test alternative operating configurations before implementation.

The models are built from Primark's operational data, so they show how systems perform under real operating conditions rather than relying on assumptions or averaged views of the network. By comparing scenarios in a simulated environment, Primark can see how changes to pick paths, labour constraints and service impacts will perform before rollout, without affecting customer service, cost or store operations. Teams can also run multiple operating scenarios and continuously test alternatives.

Adam Hoccom, Primark's director of supply chain, said the approach lets the retailer compare configurations, from layout and flow changes within sites to broader network considerations, before committing capital spend, as Primark continues to grow across markets. Kallikor chief executive and co-founder Jack O'Connell said a change in one distribution centre can affect capacity, flow, service and performance across the wider network. The partnership initially focuses on distribution centre configuration, with the aim of building a more evidence-led approach to supply chain decision-making.

IADS Notes: Primark has recently added to its distribution footprint by acquiring the automation and lease of Debenhams' Sheffield distribution centre for £90m (Retail Week, September 2026), while its international expansion continues through a franchise partnership with Liverpool to enter Mexico, adding to a presence of more than 500 stores across 19 markets (WWD, September 2026). Simulation-led planning is also gaining ground elsewhere in the sector: Target has built a digital twin of its middle-mile inventory positioning system, and Macy's is moving an AI forecasting overlay for replenishment from pilot to broader rollout within a supply chain programme targeting $235 million in savings (Supply Chain dive, September 2026). Network redesign is under way at John Lewis too, which closed its Blakelands distribution centre and consolidated operations at the highly automated Magna Park 3 facility (Drapers, May 2026). The case for testing decisions before committing capital is made more broadly by Harvard Business Review in August 2026, which argued that AI lets companies model and stress-test choices before they reach the leadership table, with lasting advantage coming from proprietary data and processes embedded in a firm's own operations.

Primark partners with Kallikor to simulate its distribution centres with digital twins