Ahead of the UK’s next Budget, which will implement many tax rises starting in April, British retailer New Look is reportedly about to accelerate its store closing campaign.
Reports claim that when leases expire, almost 25 per cent of the retailer’s network of stores could be in jeopardy. A sizable section of its 8,000 employees may be at risk as a result.
A New Look representative emphasised the value of the company’s physical shopfronts, website, and app in a statement to the media outlet.
They added that in an effort to enhance the consumer experience, the company has spent more than US $ 3.76 million on locations in Greater Manchester to test new omni-channel efforts. New Look is currently renovating an additional 17 stores nationwide based on the lessons learnt from these trials.
The business occasionally has to close stores, either at the landlord’s request or because the location is no longer viable. It does, however, continue to invest in its current store estate and search for suitable new possibilities throughout the nation, the statement continued.
Having previously closed several of its stores in 2023 before completing a refinance, New Look has already implemented some reorganisation within its retail network.
It reported that it has lowered the number of its stores from 386 to 356 in its most recent fiscal year report. While the company’s loss before taxes decreased to US $ 4.64 million during the period, its operating profit increased to US $ 21.82 million.
