Retail chain with 458 stores provides update on branch closures and prices
A HIGH street retailer with more than 450 stores has issued an update on branch closures, but shoppers don’t have to worry just yet.
Next revealed the plans in its annual results – an update on its financial position and activities – which were released today.
To boost shoppers, Next revealed it will cut prices by 2% due to lower purchasing costs for clothing and goods.
It says price tags will fall by a further 0.5% in the six months to January.
The high street giant currently has 458 stores, including its main Next stores and clearance stores.
Next now has eight stores fewer than in January 2023, after the closure of twelve major stores.
Shops in Newcastle, Hertfordshire and Derry, Northern Ireland, have all closed in the past year.
But it’s not all bad news for shoppers, because Next opened four new outlet stores in the same period.
Next Outlets are not like normal Next stores.
They offer a selection of outlet products, past season collections and sale items at discounted prices that you won’t find anywhere else.
In the results, Next also provided an update on its plans for stores.
It said: “While we will continue to open and close a small number of stores, we do not expect any material net change to our retail sales space over the coming year.”
This means that while stores may close and new ones open in the coming year, the retailer expects its overall store numbers to remain roughly the same.
Julie Palmer, partner at business recovery specialist Begbies Traynor, said: “Last year was another impressive year for Next as it bucked the trend and delivered record results.
“These results show how the retailer continues to be at the top and leading the way in a sector where so many have struggled recently.”
While Charlie Huggins, from investment service Wealth Club, said Next has managed to emerge strongly at a turbulent time for the high street.
Retailers have been hit by higher energy prices, pressure on consumer finances and borrowing costs.
Charlie added: “Several other retailers have struggled, and some, like Wilko’s, have been consigned to the history books.
“Next’s core proposition clearly resonates with British consumers and is arguably stronger than ever.”
In last year’s results, Next revealed plans to close 11 stores.
Six of the stores were not expected to achieve their target margins, while two involved site redevelopment.
The remaining three have been closed because no agreement could be reached with the landlord of the site.
Retailers will close stores in 2024
RETAILERS have been feeling the pressure since the pandemic, as shoppers cut back on spending due to the rising cost of living.
High energy costs and the switch to online shopping are also taking their toll, and many shops on the high streets are struggling to continue.
Here’s a list of all the major brands closing their stores this year:
- Argos – The brand announced plans to close 100 standalone stores in the UK last year as it looks to break away from the high street and focus on expanding its supermarket presence.
- B&V – The chain has over 300 stores across the UK, so there’s a good chance there’s one near you, but some stores have closed in recent months.
- Boots – The health and beauty chain announced last July that it would close 300 stores. The closures are ongoing and will reduce the retailer’s store count from 2,200 to 1,900 stores.
- Clintons – Clintons late last year considered plans to close 38 stores in an effort to avoid bankruptcy. We have listed the affected stores.
- Costa coffee – The caffeine giant has around 2,000 locations nationwide, so there’s a good chance there’s one near you. The chain recently closed the doors of dozens of locations. We’ve revealed which stores are closing this year.
- Iceland – The supermarket has more than 900 stores, but closed almost twenty locations in 2023, and more select stores will close.
- Lidl – The supermarket, which has 950 stores, is changing store locations, causing a number of stores to close. But the retailer also wants to open twelve new supermarkets.
- MRS – M&S, which has 405 stores across the country, has closed a string of branches across the country in a blow to shoppers. But it’s not all bad news, because the chain also has big plans to open dozens of new stores.
- Offence – The company announced in July last year that it would close six branches, but more are in the pipeline.
- W.H.Smith – The retail giant, which operates more than 1,100 stores, has closed eight stores since March 2023, but more are on the way.
What else is happening on the shopping street?
Retailers have been feeling the pressure since the pandemic and many are struggling to stay afloat.
High energy costs and rents mean that many large companies are starting to slim down the number of high street stores they operate.
We’ve seen several big losses in the last twelve months, including popular discounter Wilko and stationary brand Paperchase.
More recently, health and beauty chain The Body Shop has gone bankrupt and announced the closure of many of its 200 stores.
Other retailers such as Iceland, Boots and Matalan have reduced the number of stores on the high street.
This month, Boots announced it will close a total of nine locations, as part of its wider plans to lose 300 locations.
These closures will reduce the retailer’s total number of stores from 2,200 to 1,900.
Marks and Spencer is another retailer that has made changes to its store portfolio.
In 2022, M&S announced it would close 67 “lower productivity” stores as part of the 110 stores it had already earmarked for closure.
It wasn’t all bad news for M&S shoppers, though, with some stores closing, others opening in new locations.
We have the full list of chains opening stores in 2024. See if one is coming to a shopping street near you.
Is it all bad news?
The answer to that is no. Some retailers are expanding despite difficult market conditions.
Primark recently confirmed plans to open new branches and invest and renovate more than a dozen existing stores.
Meanwhile, Asda is massively expanding its portfolio of smaller Express stores, with plans to open 110 new stores.
Popular discounter B&M also said it plans to open 17 new locations by 2024, some of which will open soon.
Also earlier this year, WHSmith confirmed it would open 15 new stores, but these would not be located on the high street.
We have the full list of chains opening stores in 2024. See if one is coming to a shopping street near you.
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