Two more companies are deserting the UK’s high street, just the latest in a swathe of once-profitable national retailers to close a chunk of their estates for good. Experts cite government apathy over unsustainable trading conditions; perhaps they should throw irresponsible irrational elected councillors into the blame game melting pot. The mind just boggles at their current efforts to take gambling operations off the high street – there’ll be no shops left.
Two more major retailers have announced waves of closures throughout their networks of stores, as inflated operational costs, a lack of business rates reform and high rent and energy costs all continue to hammer the retail sector.
Citing concerns over its long-term profitability, budget retailer Poundland (which came under new ownership in June) announced last week that it would be shuttering at least 25 of its locations by the end of the month, and dispense with old stock by way of clearance sales pricing many items at just 10 pence.
Just days later Hobbycraft said it too would yet again make cut backs on the number of its retail positions – roughly 15 percent of its high street presence – with nine more closures now slated throughout England following on the back of the nine shops, primarily in the south east, which ceased operation in July.
Hobbycraft is also in the hands of new private equity owners in the form of Modella Capital, which has said the consolidation is necessary to maintain a portfolio of around 99 stores nationwide in the black.
The announcements from both companies are merely the latest in a wave of big retailers closing broad swathes of their outlets for good: Homebase, the Body Shop, Lloyds Pharmacy, Morrisons and Ted Baker have all shaved their retail units in the past year.
Data from the Centre for Retail Research highlights the broader picture: with 13,479 shop closures throughout 2024 marking a huge 28.4 per cent surge on the year prior.
Meanwhile, PWC tracked only 9,000 new openings through the period, leading to a net decline of just over 3,800 retail locations.
As to the leading culprit of this hollowing out of the British high street, earlier this year, Alex Probyn, top property wonk at data and analytics firm Altus Group, pointed the finger squarely at the government’s decision to roll back the discount on business rates from 75 per cent to 40 per cent.
“Despite Labour’s manifesto recognition of the undue burden business rates place on our high streets,” he argued, “that burden will [now] be significantly increased.”
Retail curtail
Altus Group said……. “Despite Labour’s manifesto recognition of the undue burden business rates place on our high streets,” he argued, “that burden will [now] be significantly increased……
