Large Iceland chain closes another store: what is known about the reasons.

Closure of a popular store

According to The Sun: The large supermarket chain with 900 stores will need to close another unit located on the main street, marking another blow to British shopping streets.

Iceland has decided to close its store in the city center of Leigh, opting not to renew the lease.

Alamy

This chain, specializing in frozen foods, has been operating in Leigh for many years, occupying the premises of the former Lenons supermarket.

The closure is scheduled for Saturday, November 1, as reported by Leigh Journal.

Store employees have been offered positions elsewhere.

The Sun has reached out to Iceland for a comment on the situation.

Local residents consider this decision to be a 'major blow' for the area.

One customer expressed:

“Every corner you turn looks depressing and sad.”

Another added that the news is 'so sad,' while another described the closure as 'a shame.'

This move is part of a series of closures being carried out by the supermarket chain.

Iceland has also closed two of its stores in Margate and Inverness over the summer.

The store in the coastal town of Kent closed on June 21, while the Scottish one closed on July 12.

Problems on the high streets

Not only Iceland has made the decision to close stores in recent weeks.

Asda will close its store in the Anchor Retail Park shopping center in Stepney Green, London, this Sunday.

River Island will close up to 33 stores in January as part of a restructuring plan aimed at reducing the clothing brand's debts.

Closures are expected to affect major cities across the UK, including Edinburgh, Leeds, Oxford, Brighton, and Perth.

Meanwhile, Poundland will close 68 stores as part of a major restructuring plan.

Questions about Bodycare's future also remain open, as the beauty and health chain is likely to appoint administrators soon.

Retail Problems in 2025

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

Research conducted by the British Chambers of Commerce revealed that more than half of companies plan to raise prices before the start of April.

A survey of over 4,800 firms found that 55% expect price increases in the next three months, up from 39% in a similar survey in the second half of 2024.

Three-quarters of companies cited the cost of employing people as their main financial pressure.

The Centre for Retail Research (CRR) also warned that this year is expected to see the closure of around 17,350 stores.

This follows a tough 2024, when 13,000 stores closed their doors, representing a 28% increase over the previous year.

Professor Joshua Bamfield, director of the CRR, noted:

“The results for 2024 show that while the consequences of store closures overall were not as drastic as in 2020 or 2022, they remain concerning, and worse times are yet to come in 2025.”

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

 

“With the rising cost of doing business and expenses for every household, we are likely to see retail job losses exceed the peak level of the 2020 pandemic.”

The situation regarding store closures, especially in city centers, reflects serious problems facing retail in the UK. Many large chains are resorting to radical measures in response to falling sales and rising costs. This not only raises concerns for employees and consumers, but could also significantly impact the overall economic situation. The reduction in the number of available stores on high streets reflects not only the difficulties faced by specific companies but also broader economic trends that society may confront in the near future.