Bargain chain with 195 stores RESERVES store from closure
Shoppers have breathed a sigh of relief after a bargain retailer confirmed it has saved one of its stores from closure.
The branch was due to close after 13 years due to a blow to the shopping street, but now appears to remain open.
The Original Factory Shop store in Milford Haven, Pembrokeshire, Wales, is said to be downing its shutters for good.
A spokesperson for the retailer, which has around 170 branches in the UK, told The Sun in January that it had made the decision to close the store and thanked customers for their support.
But in a surprising twist, the retailer has said it will keep the store open.
A recent post on the Milford Haven Original Factory Store Facebook page said: “We have fantastic news!! The store now remains open!”
Read more in Store Openings
The postal service said normal deliveries will resume in one or two weeks, and that the branch was holding a huge sale on women’s clothing, men’s clothing and children’s clothing.
Shoppers can find the sale items at the back of the store, with discounts of up to 50%.
Shoppers and locals alike are breathing a huge sigh of relief after finding out the branch won’t close as initially thought.
One said: “About time it stayed open,” while another added: “I had to hear this!”
Meanwhile, a third commented: “So glad you’re staying open.”
A fourth told branch staff: “I’m so happy for you all.”
It comes after The Original Factory Shop opened 16 locations between August and October as it expanded its retail arm across the UK.
It opened stores in Stonehaven, Castle Douglas, Perth and Lanark in Scotland.
It also raised the shutters for the first time on sites in Ashbourne, Attleborough and Blandford Forum, England.
But it hasn’t all been good news for the chain in recent months.
The retailer, which opened its first store in 1969 and now has more than 195 stores in the UK, has also closed branches.
Retailers often close and open branches in an effort to balance their portfolios and meet demand in certain areas.
The chain closed stores in Chepstow, Mildenhall and Bodmin in August last year.
In May, three months earlier, sites in Bideword and Stourport were also closed.
What other retailers are opening stores?
You might think it’s all doom and gloom and that the high streets are crumbling, with shops closing left, right and centre.
High inflation over the past few years, coupled with consumers increasingly turning to online stores, has led to hundreds of businesses closing.
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.
High labor and energy costs have also increased pressure on retailers.
In January, the Center for Retail Research announced that more than 10,000 stores would close permanently by 2023, with the loss of nearly 120,000 jobs.
But despite the backdrop, some retailers have opened branches in the UK that offer rays of sunshine.
Asda has opened hundreds of convenience stores in recent months as it looks to compete with major players Tesco and Sainsbury’s.
Primark is also opening new branches and investing and renovating more than a dozen existing stores.
WHSmith has shifted its focus to the travel side of its business, with plans to open new locations at airports, train stations and hospitals.
In an update to investors in January, the retailer said it was on track to open 15 stores this year, with a further 15 to follow “each year over the medium term”.
Lidl also wants to open 12 new stores in Britain as the company looks to raise £91 million in funding from investors.
Do you have a money problem that needs to be solved? Get in touch by emailing money@the-sun.co.uk.
Moreover, you can join us Sun Money chats and tips Facebook group to share your tips and stories.