New Look's ongoing store closures signal a troubling trend in the retail sector as the brand adjusts to economic pressures.
FLASH – New Look, a prominent high street fashion retailer, will close several stores across the UK and Ireland by the end of 2025. The Scarborough location in Brunswick Centre will permanently shut its doors on September 17. This closure continues the brand’s struggle to adapt to the changing retail landscape.
Details of the Closures
As part of its restructuring efforts, New Look has already closed 13 stores in the UK this year, alongside 26 closures in Ireland. This decision reflects the brand’s ongoing challenges amid difficult economic conditions. The Wickford branch in Essex was the first to close in 2025, ceasing operations on January 24 after 15 years.
New Look currently operates 338 stores in the UK, and the closures include locations in Loughborough, St Austell in Cornwall, and Team Valley Retail World in Gateshead. These developments highlight a broader trend where many high street brands struggle to maintain profitability amid rising costs and shifting consumer habits.
Impact of Economic Factors
The decision to close stores is reportedly influenced by rising employment costs, particularly following the National Insurance hikes announced by Chancellor Rachel Reeves in October 2024. Businesses are grappling with increased operational expenses, forcing many to reevaluate their retail presence.
A New Look spokesperson stated, “Our store estate is an important part of our business, alongside our best-in-class website and app. It is this omni-channel approach which allows us to best serve our 10 million customers, however, they like to shop.” This statement emphasizes the brand’s commitment to balancing physical and digital sales.
Future Strategies and Investments
In response to the changing retail environment, New Look is investing significantly in its omni-channel capabilities. The brand recently allocated over £3 million to enhance customer experience in its Greater Manchester stores. These initiatives aim to integrate online and in-store shopping experiences, which is essential in a competitive market.
Moreover, New Look plans to upgrade an additional 17 stores nationwide based on insights gained from these trials. Despite the closures, the company remains optimistic about its online platform, which has shown strong sales performance, significantly surpassing figures from the previous year.
The ongoing changes at New Look reflect larger shifts in the retail industry as brands adapt to evolving consumer expectations and economic realities. The impact on local economies and employment will be closely monitored as the situation develops.
