‘Ghost town’ sigh shoppers as bargain chain with some 850 branches to shut another store following string of closures
SHOPPERS at a bargain chain say their city centre is more like a “ghost town” as a bargain chain with more than 850 branches is poised to shut another outlet.
Poundland has earmarked the closure of its store in the Cleveland Centre in Middlesbrough for May 18.
The discount chain also operates another outlet in the town centre, just a short walk away in Captain Cook Square.
A spokesperson for the stores said it had been “unable to agree lease terms” at the shopping centre, which is owned by Middlesbrough Council.
The chain has now decided to consolidate its position at the other location.
It is the latest retail closure to hit Middlesbrough, with other stores such as The Body Shop and The Wired Lobby having already shut up shop.
Bargain shoppers were not happy about the move with one fan going online to write: “There’s another one biting the dust it’s diabolical this town centre is a ghost town now.”
Another went online to say: “Wont be the ‘town’ before long, won’t be any shops left. Just gonna be a derelict wasteland.”
While a third added sarcastically: “Great another empty plot in the town.”
It is not all doom and gloom for Middlesbrough shoppers though as the former sites of Debenhams, Marks & Spencer and Topshop have all been purchased.
A planned overhaul of the former House of Fraser outlet has also been announced.
The American fast food chain Wendy’s is also due to open an outlet in Captain Cook Square which will also see an inflatable theme park and soft play area.
A Poundland spokesperson said: “Sadly we’ve been unable to agree lease terms that would enable us to keep the store trading and we’re consolidating into our other nearby store in Middlesbrough centre.
“Whenever we have to close a store, it goes without saying we do all we can to find alternative roles for colleagues.”
The news of the Middlesbrough store closing comes just days after the discount retailer announced it is pulling down the shutters on its site in Lowestoft Retail Park.
That store is due to close on May 22.
It comes after Poundland in Jarrow closed for good after it was converted from a former Wilko on April 20.
The chain has shut down nine former Wilko locations just months after bringing them back to life.
The discount retailer took on 71 new locations when its rival fell into administration last year.
Poundland also closed its store in Colwyn Bay, Wales, on January 5 and a branch in Basingstoke on December 31.
But the closures come amid major expansion plans for the retailer.
The retailer did open up 80 stores in the last quarter of 2023.
Since then new stores have opened in Perry Barr, Leith, Biggleswade, Bridgwater and Norwich.
Why are retailers closing stores?
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 after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
This weekend, a new store is also set to open up in Wandsworth, London.
The chain is also giving a makeover to 150 locations.
The store upgrade is part of a huge new makeover project that the chain is calling “Project Evo” and some renovations have already been completed.
This includes sites in Urmston, Greater Manchester, Wolverhampton, West Midlands and Leeds Crown Point.
In total, 150 stores will receive makeovers by August 2024 – we have the full list.
After the alterations, all the stores will offer more baby and kids clothing for parents on a budget.
What else is happening on the high street
Many retailers have had to make changes in recent times in a bid to survive the cost of living crisis.
We have seen several big losses in the last 12 months including popular discounter Wilko and stationary brand Paperchase.
This year, health and beauty chain The Body Shop fell into administration and announced the closure of many of its 200 stores.
Almost 500 staff are set to lose their jobs after 75 stores were earmarked for closure.
Plus, clothing retailer Ted Baker fell into administration in March 2024 too, with 15 stores having shut by April 19.
Other retailers such as Iceland, Boots and Matalan have been slimming down the number of stores they have in their portfolio.
Just this spring Boots is 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.
This has upset a lot of locals in the affected towns, however, the health and beauty chain has said where stores are closing there is an alternative shop less than three miles away.
If you are concerned about your favourite store disappearing from the high street we have the full list of shops and supermarkets set to close in May – check if your local is affected.
