The retail sector seems to be more divided than ever between those backing the high street and those turning away.
According to the British Retail Consortium, six thousand shops have closed down in the UK in the last five years as a result of crippling business rates, a wave of administrations during the pandemic, and hesitancy around new openings.
However, not all retailers are looking to downsize as some have embarked on ambitious store opening sprees.
Retail Gazette takes a look at the retailers closing down their stores – and the retailers backing the high street.
Closures
House of Fraser
Frasers Group chief executive Michael Murray warned earlier this month that more of the retailer’s stores could soon close as he branded the department store model as “broken”.
Murray said House of Fraser’s store portfolio was “continually under review” and that some outlets were still “too big and we have to find solutions for the excess space”.
The department store’s estate has more than halved since it was bought out of administration by Mike Ashley in August 2018.
The group has come under criticism for its treatment of House of Fraser shops in recent years, which has seen its Birmingham city centre store turn into an outlet with multiple floors left empty and the rest of the store looking reminiscent of a jumble sale.
In a bid to revamp the retailer’s image, the group has slowly rolled out its Frasers format, a new department store concept.
Boots
Boots revealed in June that it was closing 300 UK stores over the next 12 months as it looks to “consolidate” the business.
The health and beauty retailer, owned by US giant Walgreens, said it was consolidating “a number of stores in close proximity to each other” that will see its portfolio drop from 2,200 to 1,900 UK outlets.
It is understood there will be no redundancies from the move and staff at the impacted stores will be offered work at nearby branches.
Boots said the decision will allow it to “focus investment more acutely in individual stores with the ambition of consistently delivering an excellent and reliable service in a fresh and up to date environment”.
M&S
M&S announced in May that it would close 20 of its stores this year as part of its turnaround plan to better position the retailer to accelerate growth.
The high street favourite said that 10 of the stores set to close will be relocated elsewhere in the towns and cities, five of which will be new flagship stores.
It comes as M&S revealed last year that it would close 67 “lower productivity” outlets by the end of 2027 as part of its efforts to save £300m.
Chief executive Stuart Machin told investors at the time the retailer aims to have 180 “full-line” stores selling food, clothing and homeware products by early 2028 – down from 247.
However, as part of the plans, the retailer is investing in higher profile flagship stores and a raft of store refits.
Argos
Argos is shutting 100 stores over the next year as it replaces its bricks-and-mortar outlets with concessions inside owner Sainsbury’s stores.
More than 25 new branches have recently opened inside the grocer’s supermarkets, with plans for 30 more, leaving Argos with around 180 standalone stores.
The retailer, which turns 50 this year, has been steadily moving away from the central business district to focus on expanding its presence in supermarkets after it was snapped up by Sainsbury’s in 2016.
Lloyds Pharmacy
Hundreds of Lloyds Pharmacy stores have closed or been sold as part of a major restructure of the business.
The healthcare specialist pulled all 237 of its branches inside Sainsbury’s in June, resulting in 2,000 jobs cuts.
It comes as the chain has been in the process of offloading a “significant number” of its store estate, which has seen other pharmacy chains and independents snap up the branches.
Iceland
Iceland is to close 16 of its stores this year and all of its Swift convenience outlets.
The frozen food specialist said the supermarket closures were down to shop leases expiring and “local shopping patterns changing”.
Iceland’s executive chairman Richard Walker also revealed last month that it was shutting its Swift shops as the separate branding for a convenience format “didn’t work”.
New Look
The fashion retailer has pulled the shutters down on 10 of its stores this year as part of a major restructure to capitalise on its growing online sales.
Over the past few years, New Look has cut its real estate portfolio by almost 50%, from 800 stores to just over 400.
The retailer said: “New Look has changed significantly in recent years, having accelerated our ecommerce business and reduced our store estate.
“As such, we have reviewed our operating model and structures, and we are making certain changes to our ways of working, to better reflect and support the growth of our omnichannel business.
H&M
New Look isn’t the only fashion retailer making changes to its store estate as a result of the shift to online retail.
H&M confirmed it was closing four of its UK stores at the start of the year, citing a “rapid change in customer behaviour”.
The fashion retailer said it “cannot ignore” the consumer shift and that it “sometimes needs to close stores” to “meet our customers’ needs and offer the best possible shopping experience”.
The closures form part of H&M’s cost-cutting programme which so far has seen 1,500 staff let go and 336 stores closed worldwide.
Superdry
Superdry has been forced to close eight of its stores after its licence owner decided to pull its operations.
The fashion retailer, which operates trades from 104 shops across the UK, said one of its franchisees under licence from the business were in the process of closing.
It stressed the move was not related to its cost-cutting measures it set out earlier this year in a bid to turnaround the company.
Amazon
The online giant pulled down the shutters to its first ever till-less store in the UK last month, just two years after it opened.
Amazon Fresh’s West Ealing outlet, alongside the Wandsworth and East Sheen branches, permanently closed following a review of its store portfolio.
The online giant said: “While we decided to close three Amazon Fresh stores, it doesn’t mean we won’t grow – this year, we will open new Amazon Fresh stores to better serve customers in the greater London area.”
Openings
Søstrene Greene
Last month Danish retailer Søstrene Grene revealed plans to open 100 new stores across the UK before 2030.
The family-owned homeware brand is looking to add a further five to ten locations to its existing retail estate this year as part of an ambitious expansion drive.
Søstrene Grene, which was set up in 1973, offers responsibly-sourced Scandinavian inspired home accessories.
Mango
Mango will launch 13 new stores across the UK this year as part of its retail expansion strategy.
The announcement came as the fashion retailer opened the doors today to its 4,800 sq ft space in Westfield Stratford City back in May.
The opening will be followed by new stores in Milton Keynes, Glasgow and Manchester later this year, as well as its first Brighton shop.
Lounge Underwear
Online retailer Lounge Underwear is launching eight stores across the next 12 months as part of its ambitious expansion plans.
The lingerie retailer is set to make its permanent bricks-and-mortar debut at Westfield White City next month, which will be followed by six more locations across the UK and one in Germany.
The stores -between 2,000 – 3,000sq ft- will be fitted with click-and-collect and home delivery capabilities for a service-led experience.
Sephora
In a show that physical locations are important to its UK growth, Sephora is set to open its second location in London this November, just eight months after it unveiled its debut UK store inside Westfield White City.
The LVMH-owned beauty giant’s second store will open inside Westfield Stratford City in east London.
The expansion comes after its boss revealed the first store’s performance exceeded expectations by more than 300% during the first few weeks of opening.
Screwfix
Screwfix is inching closer to its 1000 stores in the UK and Ireland target, having revealed in April that it had around 870 branches.
The DIY trade retailer said it plans to open 85 new stores in the UK, Ireland and France by January 2024. The move will create more than 800 jobs.
Pets Corner
Pets Corner is set to open 10 new stores by end of this year after securing an eight-figure funding package from HSBC.
The premium pet care retailer, which operates 150 branches across London and the south of England, said the move will create up to 320 new jobs as it opens new locations in towns including Chelmsford, Ascot, East Grinstead, Newbury and Colchester.
Greggs
Greggs has embarked on an ambitious store opening spree this year after last year’s record openings saw sales soar 23%.
The bakery chain said it will open 150 net new locations by the end of 2023 as it looks to capitalise on the return to the high street.
Greggs launched a new outlet inside Gatwick Airport last month and is in talks with Sainsbury’s to open cafés inside its supermarkets.
Moss
Moss, formerly Moss Bros, is set to open 10 new stores this year after the post-pandemic surge for formalwear saw its profits more than double.
The retailer said plans to expand its store footprint, which will create around 80 new jobs, also include “significant resites” of its existing outlets to fit the new ‘MOSS’ rebrand.
The Fragrance Shop
The Fragrance Shop is in the middle of an ambitious expansion drive to open 100 new stores by the end of 2025.
The retailer will open a new experiential flagship along London’s Oxford Street this summer, marking its first shop along the famous shopping strip.
Click here to sign up to Retail Gazette‘s free daily email newsletter
