Clarks Confirms Closure of Newport Retail Park Store
Clarks, the renowned shoe shop with 300 stores, has announced the closure of another store before the end of the year. The company has confirmed that its store located in Newport Retail Park in Spytty will be shutting down for good. Clarks has assured its employees that it is working closely with them during the consultation process. While the exact closure date has not been provided yet, customers can still shop from Clarks' full range of products online or at nearby stores in Cwmbran, Caerphilly, and Cardiff.
High Street Exodus Continues
Clarks' decision to close another store follows recent closures in Inverness and Kent. Earlier this year, the company also closed stores in Fareham and Dundee. In 2022, Clarks closed stores in Ashford and Gillingham. The once-thriving footwear chain, which had over 1,400 stores and franchises internationally at its peak, now operates only 320 stores.
Restructuring Efforts and Financial Difficulties
Facing financial difficulties, Clarks brought in management consultants McKinsey & Co in 2019. They posted a post-tax loss of £82.9 million that year. However, the company was rescued from collapse through a £100 million investment deal by private equity firm LionRock Capital. As part of the restructuring, Clarks underwent a Company Voluntary Arrangement (CVA), resulting in the loss of overall control by the Clarks family. A CVA allows businesses to explore options to save the company, such as negotiating reduced rent rates with landlords.
Impact of Online Shopping and Rising Costs
The closure of Clarks stores, along with other retailers, is a result of various factors, including the rise of online shopping and the cost of living crisis. Businesses are struggling to maintain physical stores due to the convenience and popularity of online shopping. Additionally, high energy costs and inflation are further impacting retailers and consumers alike.
Despite these challenges, Clarks has also relocated and opened new stores in recent months. The company opened a new store in Taunton and another in Newcastle's Eldon Square shopping centre, offering hope for shoppers amid the ongoing decline of the high street. Meanwhile, fellow footwear retailer Shoezone is also closing stores in its latest round of closures.
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