Cost of Living Crisis Takes Toll on Retailers
Many high street retailers, including Poundland, New Look, and Homebase, are closing down branches for good in December. The cost of living crisis, high inflation, and energy costs are all contributing factors. With rising fuel costs and expensive parking, many shoppers find it cheaper and easier to shop online.
Record Number of Business Closures in 2022
The latest official figures from the Office for National Statistics (ONS) reveal that a record 345,000 businesses closed in 2022, the highest on record since 2022. Additionally, more businesses are closing than opening for the first time in 12 years. The British Retail Consortium (BRC) also reported that the UK lost 6,000 stores over a five-year period.
Major Brands Collapse and Disappear
Several major brands, such as Wilko and Paperchase, have collapsed and disappeared from high streets forever. However, some retailers are closing certain shops to open bigger and better ones nearby, providing some solace for shoppers. M&S and B&M are among the names that have relocated and opened new locations.
List of Retailers Closing Stores Before Year-End
Here is a list of well-known retailers that will be shutting branches before the end of the year:
New Look
New Look is closing its shop in Shirley, Southampton, on December 3, following a string of closures. However, the retailer has recently opened stores in Grimsby and Leicester.
Homebase
Homebase will be closing its store in Banbury, Oxford, on December 3, as well as its shop at the O2 Centre in London on December 10.
Lacoste
Fashion brand Lacoste is closing one of its branches in Leicester on December 3.
Poundland
Poundland is set to close its store at the Chineham Shopping Centre near Basingstoke on December 31. However, the bargain retailer has opened new locations after taking on 71 Wilko sites.
WHSmith
WHSmith is closing its Market Street store in Manchester on December 2, in addition to previously closed branches in Bicester and Newcastle-under-Lyme. The retailer plans to focus on areas such as airports and railway stations.
Store Openings Offer Some Hope
Despite the closures, there are retailers expanding and opening new stores. Discount retailer Costco plans to open 14 more warehouses in the UK over the next two years. Bonmarche is opening at least seven new stores, and The White Company is also expanding. Patisserie Valerie, which collapsed into administration, has started reopening branches, and bakeries such as Wenzels, Greggs, Dunkin' Donuts, and The Cornish Bakery are all expanding in the UK.
