Business & Insolvency news | Budget retailers are closing stores, Why?

Budget retailers are closing stores, Why?

In recent weeks some of Britain's most well-known budget retailers have been announcing store closures.

Iceland announced a further four store closures this month as its cost-cutting plan continues. A spokesperson for Iceland said: "our retail estate has grown by nearly 200 stores over the last ten years; We typically open more than 20 new stores each year, creating many new jobs and contributing to the growth of local economies. At the same time, we continually review the retail experience offered to our customers and have always made a small number of store closures every year, as local shopping patterns change and shop leases expire. The business is currently trading very strongly, achieving record market shares."

Wilko's stores, have recently closed 15 stores.

Wetherspoon and Lloyds Pharmacy and have also recently announced they will closing a number of outlets for good.

Stores have been struggling to maintain costly leases and rising energy costs, this has forced closures of underperforming sites. Typical customers of the budget retailers have been hardest hit amidst the cost-of-living crisis, and are forced to trim any discretionary spending. Bosses have been forced to make the decision to close certain branches across the UK.

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