High street store closures in July
The wave of closures this month comes as UK businesses grapple with rising costs and a decrease in footfall over the past year. This year’s budget changes, including a hike in employer National Insurance contributions and escalating energy and rent costs, have forced businesses to make some difficult choices.
Iceland
The budget supermarket chain, known for its array of deals on frozen goods, recently ceased operations in Inverness.
Management decided to shutter Rose Street on July 12, just a few weeks after it bid farewell to a branch in Margate. This means that the budget retailer is no longer serving the Scottish city, with the nearest Iceland store located in Aberdeen.
Iceland is yet to disclose the reason behind the abrupt closure, but it has been undergoing a wider reorganisation of its operations in recent months.
Poundland
Poundland closed its Deepdale Retail Park branch in Preston on July 5, and will be followed by another outlet closure in Newquay on July 30.
Gordon Brothers, the former owner of Laura Ashley, acquired the business from Polish owner Pepco Group for £1 following a slump in trading. The company revealed that it would shut 68 stores while negotiating lower rents for the remaining ones.
Prior to the sale’s completion, Poundland had already earmarked 18 outlets for closure, with those ceasing operations in July being among the final confirmations.
New Look
The popular high street fashion chain also bid farewell to one of its stores at the start of July.
Hamilton, Scotland, saw New Look doors close permanently, joining nearly 100 other locations preparing to close in the months ahead.
Prior to the closure, a spokesperson for New Look remarked: “Our store in Hamilton is set to close on July 1. We would like to thank all of our colleagues and the local community for their support over the years. We hope customers continue to shop with us online where our full product ranges can be found.”
The Original Factory Shop
This bargain retailer, which offers a variety of goods, said its final goodbye to a shop in Staveley, Cumbria, on July 12.
The chain has faced tough times of late, having closed nine stores in June alone.
After being acquired by private equity firm Modella in February, The Original Factory Shop has embarked on a restructuring mission, with the Cumbria outlet becoming the latest casualty of these cutbacks.
According to the Retail Insight Network, other retailers face uncertainty, including Claire’s Accessories UK. The high-street accessories retailer is battling mounting debts of around £355 million and operating losses of £25million over three years.
Hamleys, the storied toy retailer, has been trading for 265 years, but the brand is set to close 29 of its shops this year after profits dipped outside of the UK.