The British Independent Retailers Association (Bira) has called on the Government for greater support as River Island and Hobbycraft has announce restructuring plans and Claire’s falls into administration.
The association expressed concern over the rising challenges faced by high streets, as a series of major retailers have unveiled significant restructuring plans, store closures and job cuts.
Bira CEO Andrew Goodacre said: “It’s deeply saddening to see long-standing high street chains announcing significant profit reductions and facing existential threats.
“These developments provide yet more examples, if they were needed, of the urgent need to support high street businesses across Britain.”
He added: “The government must act now to reduce business rates and close the low-value import loophole that is devastating our high streets. We cannot afford further delay.”
The warning comes as River Island is set to cut another 110 roles under its restructuring plan, Hobbycraft is closing nine more stores this month and in September, and Claire’s collapses into administration in the UK and Ireland.
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Goodacre said: “We’re also seeing further evidence of the devastating impact of the loophole that allows low-value items to enter the UK duty-free and often VAT-free.
“These imports, valued at £5.9bn annually, are direct replacements for products sold by retailers like Claire’s and Hobbycraft, representing £5.9bn taken directly from our high streets and the UK economy.”
Bira called for immediate government action to close the low-value import loophole, reduce business rates rather than increase them, and implement policies that support consumer confidence and discretionary spending.
Earlier this month, it was reported that high street sales slumped in July, falling behind online trade, according to business advisory firm BDO.
Total like-for-like retail revenues in-store and online grew by +2.8% in July, compared to +3.0% in July 2024, according to the company’s high street sales tracker.
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