The bargain retailer, with 506 branches across the UK, revealed the closure of five branches as it gave an update on its finances this morning.
The papers revealed that it also plans to open around 60 new websites over the next five years.
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The works are set to close a number of its shops in the street
Three shutters have already closed and the branches at Iver, Elgin and Heighley Gate have shut down.
Two more stores are also due to close before the end of April, but the retailer is holding fast to the locations for now.
These closures are part of business and normal practices where merchants may choose to close in accordance with websites.
Since May 2024, the works have opened three new stores, with another due to launch in Cirencester next month.
A spokesman for the works said: “We are constantly reviewing our property portfolio to ensure we have the right mix of stores in the right locations to best serve our customers.
Major High Street retailer with 17 Scots stores to close ‘third’ UK store
“This occasionally means closing stores, while also improving our stores with refits or relocations if a better location becomes available, as well as new store openings.
“As announced in our half-year results today, we have five planned closures between November 2024 and April 2025, one relocation and one new opening.
“We are in the process of building a new store pipeline which will see us return to modest growth in the store estate, with a net five new stores targeted in the next financial year.”
As part of the update today the works revealed a plan to strengthen its position on the High Street amid challenging conditions for retailers.
Many retailers have seen a footfall since the pandemic, which, along with rising bills and the impact of budget changes, has affected revenues.
Budget changes add pressure for retailers
Recent government changes have exacerbated an already difficult climate for retail businesses.
In her statement, Chancellor Rachel Reeves announced that the government is hiking National Insurance Employer Contributions (NICS) and the National Living Wage.
This will increase costs for businesses, which have already struggled to attract customers during the cost-of-living crisis.
Shoezone was one of the first retailers to blame the budget for the store closures.
ShoeZone began closing “inevitable” branches after costs increased.
In it they said: “These additional costs have resulted in the planned closure of a number of stores which have now become unspeakable.”
The challenging climate has forced some of Britain’s biggest retail giants off the high street.
WHSMITH has confirmed that it will close 18 stores in the coming months.
The company has said it will move away from its high street stores and has no plans to open any more.
Instead, the retailer is focusing on the travel side of its business, where sales are growing.
Meanwhile, HomeBase is to close 13 stores this month after falling into administration in November.
The company will close stores in Cheltenham, Coventry, Romford and Wolverhampton.
CDS, which owns the Wilko range and brand has stepped in and said it will take 70 home base sites.
This weekend alone, five popular chains will close stores, leaving shoppers without local favorites and dozens of workers facing an uncertain future.
Why are retailers closing stores?
Retailers are feeling the pinch from the pandemic, while shoppers are cutting back on spending due to the burning costs of a living crisis.
High energy costs and the post-pandemic shift to online shopping are also taking their toll, with many high street shops struggling to keep afloat.
However, the additional costs have added further pain to an already struggling sector.
The British Retail Consortium has predicted that the hike in employer NICS coffers will cost the retail sector £2.3 billion from April.
At the same time, the minimum wage will rise to £12.21 an hour from April and the minimum wage for people aged 18 to 20 will rise to £10 an hour, an increase of £1.40.
The Center for Retail Research (CRR) also warned that around 17,350 retail outlets are expected this year.
It comes on the back of a tough 2024 when 13,000 stores closed their doors for good, and is already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR, said: “The 2024 results show that although the results for shop closures overall were not as bad as in 2020 or 2022, they are still not bothersome, with the worst set in 2025.” .
It comes after almost 170,000 retail workers lost their jobs in 2024.
Year-end data compiled by the Center for Retail Research showed the number of job losses due to the collapse of major chains such as HomeBase and Ted Baker.
It said its latest analysis showed a total of 169,395 retail jobs were lost in the calendar year to 2024.
This increased by 49,990 – an increase of 41.9% – compared to 2023.
It is the highest annual reading since more than 200,000 jobs were lost in 2020 after the Coid-19 pandemic forced retailers to close their shops during the lockdown.
The center said 38 major retailers entered administration in 2024, including household names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright and Ted Baker.
About a third of all retail losses in 2024, 33% or 55,914 in total, are the result of administrations.
Experts said small high street shops could face a particularly challenging 2025 due to budget tax and pay changes.
Professor Bamfield warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
“By increasing the running costs and household costs of each consumer, it is very likely that we will see retail losses eclipse the height of the pandemic in 2020.”
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Source: HIS Education