Fashion giant with 510 stores will close its ‘favorite’ shopping center store
A FASHION giant with 510 locations is set to close one of its popular city center stores.
The Next store in Eldon Square is closing, but that’s not all bad news for shoppers.
The retail giant is closing its Newcastle branch as it looks to move to new premises, although a date for the move is yet to be confirmed.
The store, currently located on Newgate Street, will move to the former Debenhams branch in St Andrew’s Way, the newspaper said. BBC.
According to local news reports, the new unit has been vacant since May 2021.
Locals appear to have mixed feelings about the move and have taken to social media to share their thoughts.
One person said: “Next has moved from a prime location to the bottom of Eldon Square, I don’t understand, they clearly don’t want the business.”
Another said: “I’m actually quite excited.”
The Sun has approached Next for comment and will update here when we know more.
It comes after a series of closures for the fashion retailer in recent months.
In September last year, the retailer confirmed it would close 11 stores by the end of 2023.
Six of the stores were not expected to achieve their target margins, while two stores were subject to site redevelopment.
Shops are closed in places including Bristol, Suffolk, Hertfordshire and Derry in Northern Ireland.
High streets have taken a hit in recent years due to rising rents and shoppers increasingly turning to online stores.
Several major retailers have gone bankrupt, including Wilko, Paperchase and most recently The Body Shop.
Other retailers have also reduced the number of high street shops, such as Iceland, Boots and Matalan.
Argos also closed 42 UK stores last June, including all 34 branches in the Republic of Ireland.
The retailer said it is “reducing the number of standalone stores” while opening more stores in Sainsbury’s supermarkets in a bid to offer customers an even “more convenient” way to shop.
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.
Nine new openings took place in November last year, including six new stores plus three store renovations.
What else is happening on the shopping street?
It’s not all doom and gloom on the high street and some retailers are bucking the trend and expanding.
Asda is massively expanding its portfolio of smaller Express stores, with plans to open 110 new stores.
Meanwhile, Primark recently confirmed plans to open and invest in new branches and renovate more than a dozen of its existing stores.
Discount chain B&M also said it plans to open 17 new locations by 2024, some of which will open soon.
Earlier this year, WHSmith also 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.
Why are retailers closing their stores?
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 move to online shopping after the pandemic are also taking their toll, with many high street stores struggling to continue.
The high street has seen a slew of closures in the past year, with more to come.
The number of jobs lost in UK retail fell last year, but 120,000 people still lost their jobs, figures show.
Figures from the Center for Retail Research show that 10,494 stores will have closed for the last time in 2023 and 119,405 jobs will have been lost in the sector.
It was fewer stores than had been lost in recent years, and a decrease from the 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
While some big names on the high street were lost, including Wilko, many major companies had already gone bankrupt before 2022, the center said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost of living crisis, inflation and rise in interest rates have prompted many consumers to tighten their belts, causing retail spending to fall,” said Prof Bamfield.
“Retailers themselves have faced rising energy and occupancy costs, staff shortages and declining demand, making rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Besides Wilko, which employed around 12,000 people when it went bust, the biggest failures of 2023 include UK Flooring Direct, Planet Organic and Tile Giant.
The Center for Retail Research said most stores were closed as companies tried to reorganize and cut costs rather than face bankruptcy.
However, experts have warned that more bankruptcies are likely this year as consumers tighten their belts and borrowing costs for businesses soar.
According to official figures, about 14% of bankruptcies last year occurred in retail businesses.