New Look, the British fashion retailer, is set to intensify its store closure programme as it faces looming tax increases this April.
Nearly a quarter of the company’s 364 UK stores could be at risk when leases expire, potentially impacting some of its 8,000 employees.
This move comes as part of an ongoing restructuring effort, which has already seen New Look’s UK presence shrink from 600 stores in 2018.
The acceleration is largely attributed to significant cost increases announced in October’s budget, including:
- A rise in employers’ National Insurance contributions
- An increase in minimum wage to £12.21 per hour
- A £140 million hike in the retail industry’s business rates bill
Despite these challenges, New Look remains committed to its physical retail presence. The company has invested over £3 million in Greater Manchester stores to trial new omni-channel initiatives and is upgrading 17 more stores nationwide.
The company has shown signs of financial improvement, narrowing its pre-tax loss to £21.7 million for the year ending 30 March, despite an 8.9% drop in sales to £769.2 million.
New Look attributes this to store closures and tough trading conditions, but remains optimistic about future opportunities across the country.
A New Look spokesperson emphasised the importance of their store estate alongside digital platforms, stating, “On occasion we do have to close stores, either due to the landlord’s request or because the site becomes unviable.
“However, we remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate.”
As the situation develops, Scottish shoppers and employees will be keen to learn which, if any, local stores might be affected by these closure plans.
The company has not yet released a list of specific locations at risk, leaving the fate of Scottish outlets uncertain for now.