Next announces it will shut 11 stores this year in latest blow to the High Street
- Fashion retailer shuttering stores amid poor efficiency and landlord disputes
Retail large Next has introduced plans to shut down 11 extra stores this year in one more main blow to the High Street.
The FTSE100 excessive road chain mentioned six of the closures are occurring as a result of it expects the stores will not give you the option to attain their goal margins.
Two others are closing due to web site redevelopments, whereas the remaining three are shutting as a result of an settlement couldn’t be met with the landlords.
The hammer blow comes after Next closed its retailer in Westfield Stratford City earlier this year. The names of the stores that are closing haven’t but been revealed.
It comes amid a torrid year for the excessive road in which many main chains have introduced closures throughout the UK. Most lately, Wilko plunged into administration and after rescue talks failed, 400-plus stores are set to shut with 12,500 jobs in danger.
A Next buying and selling replace for the year to date, issued at this time, mentioned: ‘We anticipate to shut 11 mainline stores this year.
‘Six closures are in places the place we forecast that the retailer wouldn’t obtain our goal margin on nearly any phrases; two closures are due to the web site being redeveloped; three additional closures are on account of being unable to agree acceptable new phrases with landlords.
‘This final class consists of one massive retailer the place the size of the lease proposed by the landlord, on a excessive mounted lease cost, was not one thing we may agree to.’
The stores report a mixed turnover of £30.7million, in accordance to the report. Next didn’t instantly identify the stores, and has not mentioned what number of jobs will be saved, or if employees will be moved to different places.
However, the firm reported that gross sales throughout its portfolio have been up 5.4 per cent in the six months to July 2023 in contrast to final year, with pre-tax earnings of £420m.
It expects to report full-year earnings of £875m earlier than tax, revised up from a earlier expectation of £845m.
The firm has credited good climate and rising wages for its constructive monetary outcomes, with gross sales rising 7.5 per cent and 10 per cent in May and June in contrast to the identical time in 2022.
Despite closing 11 ‘mainline’ stores earlier than the finish of the year, Next has additionally opened 5 new ‘clearance’ outlet stores in latest months to dump extra inventory.
The agency, run by Tory peer and ardent Brexiteer Lord Wolfson, has been snapping up iconic British manufacturers reminiscent of Cath Kidston – which fell into administration earlier this year – in a bid to attraction to new clients.
It additionally owns furnishings model Made.com, child product retailer JoJo Maman Bebe and the majority stake of the UK holdings of each US clothes agency Gap and lingerie retailer Victoria’s Secret after their British operations bumped into bother.
Next additionally owns a majority stake of US luxurious clothes chain REISS – whose followers embrace the Duchess of Cambridge.
Shares in Next closed up 3.34 per cent at the shut of buying and selling at this time.
Its sturdy efficiency got here amid in any other case depressing circumstances in the UK retail market – with the dying of homeware model Wilko, and types reminiscent of Boots and New Look saying closures.
