The United Kingdom is facing a record wave of store closures in 2025: what we know.

According to The Sun: Today, several companies are closing their stores, giving shoppers the chance to get discounts of up to 70% in the closing sale.

Among the chains shutting down are well-known brands such as Hobbycraft and The Original Factory Shop.

Store closures are happening against a backdrop of increasing pressure on retail, as the costs of maintaining physical sales locations have risen significantly.

Retailers are facing issues due to high energy bills, rent, and rising social security contributions.

Many shoppers also prefer the convenience of online shopping instead of visiting physical stores.

Hobbycraft

This craft store chain is closing its locations as part of brand restructuring.

Today, September 20, the store in Crayford is closing.

The stores in Maidenhead and Chichester were closed at the end of this week.

All closed stores are offering discounts of up to 70%.

The Original Factory Shop

The Original Factory Shop has been closing locations across the UK in recent weeks due to restructuring.

Today, the store in Market Drayton, Shropshire, is closing.

The store started a sale with a 50% discount to clear out stock.

The company has closed several stores this year, and another 28 stores are threatened with closure.

PAIN IN RETAIL IN 2025

The British Retail Association predicts that rising employer contributions will cost the retail sector £2.3 billion.

Research from the British Chamber of Commerce found that more than half of the companies plan to raise prices by early April.

A survey of over 4,800 firms showed that 55% expect price increases in the next three months, an increase from 39% in a similar survey last year.

Three-quarters of companies indicated that employee retention costs are a major financial pressure.

The Centre for Retail Research also warned that about 17,350 retail outlets could close this year.

These events are happening against the backdrop of a difficult 2024, when 13,000 stores closed their doors – a 28% increase compared to the previous year.

Professor Joshua Bamfield, director of the CRR, noted: “The results of 2024 show that while the consequences of store closures overall were not as severe as in 2020 or 2022, the situation is still concerning, with even greater risks in 2025.”

Professor Bamfield also warned of a tough future in 2025, predicting a loss of up to 202,000 jobs in this sector.

The closure of stores from well-known brands such as Hobbycraft and The Original Factory Shop further highlights the challenges facing retail in an environment of rising costs and changing consumer behavior. Forecasts for the further state of the market indicate potential serious troubles for many companies in the near future.