Subsequent pronounces it is going to shut 11 shops this yr in newest blow to the Excessive Avenue
Subsequent pronounces it is going to shut 11 shops this yr in newest blow to the Excessive Avenue
- Six of shops are closing as a result of they don’t seem to be anticipated to achieve goal margins
Retail large Subsequent has introduced plans to shut down 11 extra shops this yr in yet one more main blow to the Excessive Avenue.
The Excessive Avenue chain stated six of the closures are occurring as a result of it expects the shops won’t be able to achieve their goal margins.
Two others are closing because of web site redevelopments, whereas the remaining three are shutting as a result of an settlement couldn’t be met with the landlords.
The hammer blow comes after Subsequent closed its retailer in Westfield Stratford Metropolis earlier this yr. The names of the shops that are closing haven’t but been revealed.
It comes amid a torrid yr for the Excessive Avenue by which many main chains have introduced closures throughout the UK. Most lately, Wilko plunged into administration and after rescue talks failed, 400-plus shops are set to shut with 12,500 jobs in danger.
Retail large Subsequent has introduced plans to shut down 11 extra shops this yr in yet one more main blow to the Excessive Avenue
A Subsequent buying and selling replace for the yr to this point, issued as we speak, stated: ‘We count on to shut 11 mainline shops this yr.
‘Six closures are in areas the place we forecast that the shop wouldn’t obtain our goal margin on virtually any phrases; two closures are because of the web site being redeveloped; three additional closures are because of being unable to agree acceptable new phrases with landlords.
‘This final class contains one massive retailer the place the size of the lease proposed by the owner, on a excessive fastened lease cost, was not one thing we might comply with.’
The shops report a mixed turnover of £30.7million, in keeping with the report. Subsequent didn’t instantly identify the shops, and has not stated what number of jobs shall be saved, or if employees shall be moved to different areas.
Nonetheless, the corporate reported that gross sales throughout its portfolio had been up 5.4 per cent within the six months to July 2023 in comparison with final yr, with pre-tax earnings of £420m.
It expects to report full-year earnings of £875m earlier than tax, revised up from a earlier expectation of £845m.
The corporate has credited good climate and rising wages for its constructive monetary outcomes, with gross sales rising 7.5 per cent and 10 per cent in Might and June in comparison with the identical time in 2022.
