Budget-hit New Look to Speed up Store Closures

By Evans Momodu
1 minute digest


New Look may accelerate the closure of its stores as it faces rising costs stemming from the recent budget, according to The Times.

Around 25% of the fashion retailer’s 364 locations could close when their leases expire, driven by increases in employers’ National Insurance contributions and the National Living Wage.

The retailer had already planned some closures but is now likely to fast-track the process due to cost pressures.

Employers' National Insurance contributions will rise from 13.8% to 15% in April, with the threshold lowered to £5,000. The minimum wage for over-21s will increase from £11.44 to £12.21 per hour.

A New Look spokesperson emphasized the importance of physical stores while highlighting growth in the company’s online platform. They stated:

"On occasion we do have to close stores... However, we always remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate."

New Look narrowed its pre-tax loss to £21.7m for the year ending March, down from £87.8m the previous year, despite an 8.9% drop in sales to £769.2m. While no definitive decisions on closures have been made, the combination of economic pressures and evolving consumer habits is pushing New Look to reassess its physical presence on the high street.
Source: Sky news 
Image: The Mirror