New Look has confirmed the closure of its Wickford store in Essex, amid fears that up to 90 of the fashion retailer’s UK sites could be at risk.
The high street chain is thought to be planning to trim its store portfolio, with dozens of locations facing potential closure as their leases expire.
This move comes as retailers brace for increased costs following Labour’s Autumn budget announcements. Of New Look’s current 364 shops across the country, approximately 90 locations are under review, according to The Times. Store closures have become the norm in the UK over the last decade.
The fashion giant has already undergone two restructurings of its store estate in the UK over the past six years, having reduced its presence from around 600 outlets in 2018.
While no final decisions have been made regarding additional closures, the company confirmed its Wickford location will cease trading on January 24 after 15 years of operation.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
New Look is closing one of its stores – with dozens of locations still at risk of shutting down for good
PA
A New Look spokesperson said customers could “continue to shop with us at our nearby Basildon store” following the Wickford closure. The company thanked colleagues and the local community for their support over the years.
New Look continues to hold a strong market position, ranking second in women’s wear market share for the 18-44 age range, according to Kantar research. The retailer recently invested over £3million in its Greater Manchester stores to trial new customer experience initiatives.
Following these trials, the company is now upgrading an additional 17 stores nationwide. The fashion chain reports strong online performance, with sales volumes significantly higher than the previous year and improved margins.
More than 10 million customers shop across New Look’s platforms, including stores, website and app. The retailer’s online presence spans 53 countries, with website visits increasing from 235 million to 246 million in the financial year ending March 2024.
While the Wickford closure came at the landlord’s request, New Look has not announced plans to replace the store. The spokesperson noted that store closures occasionally occur due to landlord requests or when sites become unviable.
“However, we always remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate,” the New Look representative added.
The company maintains that its store estate remains an important part of its business, alongside its website and app, supporting what it calls an “omni-channel approach” to serve its 10 million customers.
A company spokesperson emphasised their commitment to a multi-channel approach: “It is this omni-channel approach which allows us to best serve our 10 million customers, however they like to shop.”
The store closure plans have reportedly been accelerated after the Chancellor’s Autumn fiscal statement, which will reduce the National Insurance threshold for employers.
From April, businesses will start paying National Insurance contributions when employees earn £5,000, down from the previous £9,100 threshold. Financial expert Martin Lewis has warned that employers will face an additional £615 in costs per worker under the new rules.
Simon Gleeson, partner at Blick Rothenberg, told Metro: “The Budget is pinching into the working person’s pockets and stifling small business growth, and potentially bring forward redundancies.”
LATEST DEVELOPMENTS:
Chancellor Rachel Reeves has defended the tax increases, stating the revenue is necessary to put public finances on a “firm footing.” The changes come alongside other cost pressures for retailers, including rises in the national minimum wage and business rates.
Major retailers across Britain are responding to the upcoming tax changes by intensifying their efficiency drives through automation and other measures. Leading chains including Tesco, Sainsbury’s, M&S and Next are seeking ways to limit the impact of rising costs on customer prices.
The retail sector faces a combined annual cost increase of £7billion from April, driven by higher social security payments, minimum wage increases, packaging levies and business rates.
These tax changes have sparked criticism from the business community as the Labour government seeks to raise funds for infrastructure and public services. The measures have already impacted financial markets, with retail share prices falling sharply and government borrowing costs rising.
