Big high street retailer shutting city-centre store TODAY following string of closures
A MAJOR fashion retailer with more than 350 stores will close a city-centre location today.
New Look will shutter it's shop in Chelmsford, Essex amid a string of other closures.
The retailer has not confirmed any plans to open another branch in the area.
“Our store in Chelmsford is set to close on 28th May," a New Look spokesperson said.
"We would like to thank all of our colleagues and the local community for their support over the years.
"We hope customers continue to shop with us online at newlook.com, where our full product ranges can be found.”
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What's happening at New Look?
New Look began ramping up its store closure programme prior top April's National Insurance hike.
Approximately a quarter of the retailer's 364 stores are at risk when their leases expire.
This equates to about 91 stores, with a significant impact on it's 8,000 strong workforce.
The company has restructured its store estate twice in the past six years, reducing its portfolio from around 600 UK stores in 2018.
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For the time being, stores remain open as usual, and no final decisions regarding closures have been made.
The move to accelerate store closures is understood to be driven by the increase in National Insurance, announced by Chancellor Rachel Reeves in October.
Employers currently pay NICs for most workers earning more than £9,100 a year.
The sum they pay is the equivalent of 13.8% of the employee's earnings above that threshold.
For an employee earning £30,000, the employer would pay NICs of £2,884.20.
However, in the Autumn Statement, the Treasury announced it would increase the tax rate to 15% and reduce the threshold at which firms must pay to £5,000.
The British Retail Consortium has predicted that these changes will create a £2.3billion bill for the sector.
The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year.
It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025."
A New Look spokesperson said: "Our store estate is an important part of our business, alongside our best-in-class website and app.
"We have recently invested over £3million in our stores in Greater Manchester to trial new omnichannel initiatives to improve customer experience.
"We also continue to invest in our thriving online platform which has resulted in a strong online sales performance, with volumes significantly outpacing last year and an improved online margin."
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"On occasion we do have to close stores, either due to the landlord’s request or because the site becomes unviable.
"However, we always remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate."