Bargain high street chain with 850 branches to shut ‘new’ shop forever TODAY leaving shoppers gutted
A MAJOR bargain high street chain is set to shut its “new” shop for good today.
Shoppers have been left gutted at the news as the store has opened only months prior.
Poundland on Freeman Street in Grimsby has been a popular destination for bargain hunters but it will be closing forever today.
The store has confirmed its closure just seven months after it took over premises of a longstanding Wilko shop.
A spokesperson for the retailer said the firm had been unable to agree a new lease with the landlord.
They previously told The Sun: “We’ve been unable to secure a long term lease that would enable us to keep trading which is disappointing.
“As you know, whenever we have to close a store, we do all we can to look for other opportunities for colleagues.”
Locals have cried out at the latest blow.
One local wrote on Facebook: “Terrible decision,” and added: “Now the poor staff are jobless again, some which had been made redundant less than a year ago from Wilko.”
A third agreed saying: “So sad I feel so sorry for the staff, while a fourth penned: “Gutted it’s closing.”
Another expressed frustration at the stores short-lived existence writing: “It’s only just bl****opened!”
Poundland bought up 71 ex-Wilko stores when the retailer fell into administration.
The discounter quickly turned around the locations and opened up many of the stores under its own brand before Christmas.
By February, Poundland completed the refurbishment of 11 former Wilko stores.
However, since then, the discount retailer shut down nine former Wilko premises.
A spokesperson for Poundland said that the retailer had “moved really quickly” to open a significant number of stores so that they could offer roles for staff.
They added: “While it’s disappointing we haven’t been able to make a small number of them work in the long term, all the people employed at those stores have been offered roles at nearby locations.”
But it’s not all gloom and doom as Poundland is making huge changes at more stores in a big boost to shoppers.
The retailer has revealed its plans for a huge makeover project, dubbed “Project Evo”.
Around 150 stores are expected to receive makeovers until August 2024.
After the alterations, all the stores will offer more baby and kids clothing for parents on a budget.
The introduction of chilled food will give shoppers the chance to pick up items from Poundland’s popular frozen food ranges.
Shoppers will also be able to pick up Poundlands £3 meal deal in each location – the best value in the UK.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.