High street retailer with 458 stores issues update on closures and prices – but it’s not all bad news for shoppers
A HIGH street retailer with more than 450 stores has issued an update on branch closures – but shoppers don’t need to worry yet.
Next unveiled the plans in its full year results – an update on its financial condition and operations – which came out today.
In a boost to shoppers, Next revealed it will be reducing prices by 2% due to lower buying costs for clothing and goods.
It said price tags set to fall by another 0.5% in the six months to next January.
The high street giant currently has 458 stores, including mainline Next sites and clearance stores.
Next now has eight fewer shops than in January 2023 after closing 12 mainline stores.
Shops in Newcastle, Hertfordshire and Derry, Northern Ireland have all closed in the last year.
But it’s not all bad news for shoppers, as during the same period, Next opened four new outlet stores.
Next Outlets are not like normal Next stores.
They feature a selection of outlet products, past season collections and clearance items at discounted prices you won’t find anywhere else.
In its results, Next also provided an update on its plans for stores.
It said: “Whilst we will continue to open and close a small number of stores, we do not anticipate any material net change in our Retail selling space in the year ahead.”
This means that while stores may close and new ones may open over the next year, the retailer expects its overall store numbers to stay 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 highlight how the retailer is still at the top its game and leading the charge in a sector where so many have struggled of late.”
While Charlie Huggins, from investment service Wealth Club, said Next has managed to to come out strong during a turbulent time for the high street.
Retailers have been impacted 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 is clearly resonating with the UK consumer 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 reach their target margins, while two were site redevelopments.
The remaining three closed because an agreement couldn’t be reached with the site’s landlord.
Retailers closing stores in 2024
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online are also taking a toll, and many high street shops have struggled to keep going.
Here’s a list of all the big-name brands closing stores this year:
- Argos – The brand announced plans to close 100 standalone UK branches last year as it looks to move away from the high street and focus on expanding its presence in supermarkets.
- B&Q – The chain has over 300 shops across the UK, so chances are you have one near you, but some stores have closed in recent months.
- Boots – The health and beauty chain announced that it would be closing 300 stores last July. Closures are ongoing and this will see the retailer’s estate reduced from 2,200 to 1,900 shops.
- Clintons – Clintons mulled plans to close 38 shops in a bid to avoid insolvency late last year. We’ve listed the stores affected.
- Costa Coffee – The caffeine giant has around 2,000 sites nationwide, so chances are you’ll have one near you. The chain has shut the doors to dozens of its sites recently. We’ve revealed which stores are due to close this year.
- Iceland – The supermarket has more than 900 stores but closed nearly two dozen sites in 2023, and more selected shops are due to shut.
- Lidl – The supermarket, which has 950 stores, is changing up shop locations, which has meant that some stores have to close. But the retailer is also looking to open 12 new supermarkets.
- M&S – M&S, which runs 405 stores across the country, has been closing a string of branches across the country in a blow for shoppers. It’s not all bad news, though, because the chain also has big plans to open dozens of new shops as well.
- Trespass – The firm announced in July last year that it was closing six branches, but more are on the way.
- WHSmith – The retail giant, which runs over 1,100 stores, has shuttered eight stores since March 2023, but more are coming.
What else is happening on the high street?
Retailers are feeling the pinch since the pandemic and many are struggling to stay afloat.
High energy costs and rents mean many big companies are starting to slim down on the number of high street stores they operate.
We have seen several big losses in the last 12 months including popular discounter Wilko and stationary brand Paperchase.
More recently, health and beauty chain The Body Shop has fell into administration and announced the closure of many of its 200 stores.
Other retailers such as Iceland, Boots and Matalan have been slimming down the number of stores they have on the high street.
Just this month Boots has announced that it will be closing a total of nine sites, as part of its wider plans to get rid of 300 locations.
These closures will see the retailer’s total shops reduced from 2,200 to 1,900.
Marks and Spencer is another retailer that has been making changes to its store portfolio.
In 2022, M&S announced that it would be shutting 67 “lower productivity” stores as part of the 110 stores it had already earmarked for closure.
However, it was not all bad news for M&S shoppers as where some stores closed, others opened up in new locations.
We have the full list of chains opening stores in 2024 – see if one is coming to a high street near you.
Is it all bad news?
The answer to that is no, some retailers are expanding despite the difficult trading conditions.
Primark recently confirmed plans to open new branches and invest and renovate more than a dozen of its existing shops.
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 had plans to open 17 new sites in 2024 with some set to open imminently.
Also earlier this year WHSmith confirmed it would be opening up 15 new shops, but they would not be on the high street.
We have the full list of chains opening stores in 2024 – see if one is coming to a high street near you.
Do you have a money problem that needs sorting? Get in touch by emailing squeezeteam@thesun.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.