Large chains closing stores: where discounts reach up to 70%.

According to The Sun: Several retail chains are closing their stores next week, and shoppers can take advantage of discounts of up to 70% during the closing sale.

Among the closures are well-known brands such as Poundland and The Original Factory Shop.

These changes are taking place against a backdrop of increasing pressure on physical store networks due to the constant rise in costs for their upkeep.

Rising energy bills, rent, and higher contributions to National Insurance for workers are putting the retail sector at risk.

Moreover, the convenience of online shopping has led to fewer shoppers visiting traditional stores.

Closure of Hobbycraft

The hobby goods store, Hobbycraft, is closing its locations as part of a restructuring aimed at preserving the brand.

Stores in Maidenhead and Chichester will close on September 18.

The store in Crayford will close permanently on September 20, and in King’s Lynn on September 22.

The last store to close will be in Stafford on September 28.

All stores have already announced promotions with discounts of up to 70%.

Hobbycraft notes that initial discounts will be 50%, but they will increase closer to the closing date.

Closure of Poundland

As part of restructuring plans announced earlier this year, Poundland plans to close 68 stores by mid-October.

On September 14, the store in Rivergate Shopping Centre, Irvine, will close.

There will also be 16 other locations closing in the coming weeks, including six stores on September 28.

Closure of The Original Factory Shop

The Original Factory Shop is also closing its outlets across the UK as part of its restructuring.

The company has already closed several stores this year and plans to close another 28.

The store in Market Drayton, Shropshire, will close on September 20.

This store is currently having a sale with a 50% discount to clear stock.

Closure of New Look

The New Look chain plans to close another 12 of its outlets by the end of the year.

On September 17, the store on Station Road in Harrow Town Centre will close.

This is becoming relevant against the backdrop of reports about the owners negotiating with consultants regarding a strategic review that could lead to a sale.

Closure of Pret A Manger

Pret A Manger is closing one of its stores on September 18 after 30 years of operation.

The closing store is located at 2 Cornmarket Street in Oxford.

All employees of this store will be transferred to the nearest locations, as stated by Pret a Manger in a message to the Oxford Mail.

THE POVERTY OF RETAIL TRADE IN 2025

The British Retail Association predicts that the increase in employer contributions will lead to costs of £2.3 billion for the retail sector.

A survey by the British Chambers of Commerce shows that more than half of companies plan to raise prices before the beginning of April.

A survey of over 4,800 businesses revealed that 55% expect price increases in the next three months, more than the 39% in a similar survey conducted earlier in 2024.

Three-quarters of companies stated that the main financial pressure is the cost of workers.

The Centre for Retail Research (CRR) also warns that around 17,350 retail outlets may close this year.

This is occurring against the backdrop of a tough 2024, when 13,000 stores closed their doors forever, already a 28% increase compared to the previous year.

Professor Joshua Bamfield, director of CRR, said: “The results of 2024 show that, although the closure situation was not as bad as in 2020 or 2022, it is still worrying, and worse is likely ahead in 2025.”

Professor Bamfield also warned of a gloomy forecast for 2025, predicting that up to 202,000 jobs may be lost in the sector.

“By raising store maintenance costs and costs for every consumer, it is very likely that we will witness job losses in retail that exceed the pandemic level in 2020.”