New Look Set to Close 14 Stores Amid Strategic Review

New Look has announced the closure of 14 stores across the UK, with the latest branch in Harrow Town Centre set to shutter on September 17, 2024. This decision follows a challenging retail landscape and comes as the company undergoes a strategic review, potentially paving the way for a sale.

The Harrow store has been a fixture of the local high street for over 20 years. In a sign posted in the store window, management expressed gratitude to the community, stating, “Thanks for having us, Harrow. This store will be closing on Wednesday 17th September.” Shoppers are currently taking advantage of closing down sales, with many items priced under £10.

New Look’s parent company, owned by Alcentra and Brait since 2020, has engaged financial advisory group Rothschild to facilitate the strategic review. While a timeline for this process has not been established, company representatives have assured customers that operations will continue as normal during this period. A spokesperson stated, “Management is focused on running the business and executing the strategy for long-term growth.”

The company’s performance has shown resilience, driven by a successful summer trading period and significant gains in its online market share. In April 2024, New Look received a cash injection of over £30 million to bolster its online operations, now accounting for more than 40% of the retailer’s revenue.

Despite the current momentum, New Look has previously indicated plans to close nearly 100 stores, particularly as National Insurance hikes took effect in April. Approximately a quarter of the retailer’s 364 stores are at risk when their leases expire. The recent closures add to the chain’s challenges, with a dozen locations shuttered this year, including branches in Scotland and Wales.

The full list of closures includes:

– New Look, Harrow – closing September 17
– New Look, Scarborough – closing September 17
– New Look, Neath, Wales – closed August 6
– New Look, Hamilton, Scotland – closed July 1
– New Look, Birmingham, Northfield shopping centre – closed June 8
– New Look, Willow Place, Corby – closed June 1
– New Look, Bexleyheath, London – closed April 19
– New Look, Preston – closed March 20
– New Look, Valley Retail World, Gateshead – closed March 9
– New Look, St Austell, Cornwall – closed March 4
– New Look, Porth, Rhondda Cynon Taf, Wales – closed February 22
– New Look, Wickford, Essex – closed January 24
– New Look, Carillon Court, Loughborough – closed January 21
– New Look, Devizes, Wiltshire – closed

The retail sector is facing significant pressures, with the British Retail Consortium estimating that the recent hike to employer National Insurance contributions will cost the sector approximately £2.3 billion. A survey conducted by the British Chambers of Commerce revealed that 55% of businesses expect to raise prices in the upcoming months, reflecting the rising costs of employment.

The Centre for Retail Research (CRR) has projected that around 17,350 retail locations may close this year, building on a challenging 2024 where 13,000 shops were lost, marking a 28% increase from the previous year. Professor Joshua Bamfield, director of the CRR, warned of a bleak outlook for 2025, predicting potential job losses exceeding 202,000 in the retail sector.

As New Look navigates these turbulent waters, the future of its stores remains uncertain, but the company is committed to maintaining its presence in the evolving retail landscape.