New Look to accelerate store closures
New Look is set to accelerate store closures, with around a quarter of the fashion retailer’s locations at risk.
The retailer – which operates 364 stores across the UK – is likely to close the stores when leases expire, The Times has reported.
It is believed that the acceleration in closures is a direct result of increased costs announced in the October Budget. These include a hike in employer National Insurance to 15% and a reduced threshold at which they pay the tax. Minimum wage is also set to increase to £12.21 an hour while business rates are also due to rise in April.
New Look traded from nearly 600 stores in the UK in 2018, but has since reduced its high street presence following two restructuring processes. The retailer’s stores are now held on relatively short leases with rents linked to store turnover.
A spokesperson for New Look told The Times: “Our store estate is an important part of our business, alongside our best-in-class website and app. On occasion we do have to close stores, either due to the landlord’s request or because the site becomes unviable. However, we remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate.”
This comes after The Centre for Retail Research announced that it expects the amount of store closures in the UK to increase to around 17,350 in 2025, up from 13,479 last year.