More major retailers are preparing to shut shops this month including WHSmith and Homebase – as the high street’s struggle continues in changing and challenging times
British high streets are facing challenging times with many shops closing due the rise of online shopping and out of town retail parks popping up. The cost of living has also affected shoppers’ spending habits – and now retailers are blaming changes in the Government Budget.
Many big high street brands are feeling the pinch – and have been for years – with the Covid pandemic also blamed for thedecline of city centres. The latest figures from the Centre for Retail Research show that 13,479 stores closed their doors in 2024.
Several major stores are expected to shut this month, as city centres across the UK change face, with store closures increasing yearly. And about 6 in 10 adults are “spending less on non-essentials because of cost of living” – according to figures from the Office for National Statistics (from January 2024).
Here’s the latest changes anticipated for January 2025:
WHSmith
Long established stationery giant WHSmith will close its Old Christchurch Road branch in Bournemouth, Dorset, on Saturday, January 18.
It comes after the recent closure of another WHSmith store in Boscombe, Dorset which closed its doors for good in June 2024. A notable 10 sites, including those in Manchester and Somerset, have ceased trading across the UK since March 2023.
However, WHSmith bosses have confirmed the opening of 15 new sites next year. These fresh store formats will be targeted in travel hubs like airports and train stations – with some providing hot food and coffee.
Shoe Zone
The well known city centre shoe retailer is set to close 20 or more UK sites – and bosses are blaming Labour’s plans in the autumn Budget 2024 for the closures.
A Shoe Zone spokesperson stated that the Chancellor’s decision to increase employers’ national insurance contributions and the minimum wage has resulted in “significant additional costs”.
Homebase
DIY retailer Homebase went into administration in 2024 and placed 74 shops on sale. Since then, 70 branches have been saved, but four are still earmarked to close.
The Homebase shops closing down with no set date are as follows: Serry and Omagh (Northern Ireland) along with the Glenrothes and Inverurie shops in Scotland.
Greggs
Popular bakery chain Greggs is closing its store in Coventry – and customers have been left saddened by the shock closure. The Foleshill Road bakery locked its doors for the last time on January 4.
A sign was placed in the window which read: “Sorry, we are closing on January 4, 2025. Your nearest shop is 118/120 Jubilee Crescent, Radford.”
Greggs bosses have reassured customers that it’s not part of wider closure plans, though it hasn’t reassured locals. A Facebook user commented: “This Greggs is very popular and will be sorely missed.”
Deichmann
The German shoe shop is one of Europe’s largest footwear retailers, but it will soon close its Commercial Street store in Newport city centre in south Wales. Shoppers have until Saturday, January 11, to visit before it shuts up shop for good.
It follows seven years of trade in the Welsh city – customers will need to head to the store in Cwmbran to get their hands on Deichmann shoes or bags from 11 January onwards.
New Look
Some 25% of New Look’s 364 UK stores are at risk of closure when their leases expire, chief executive Helen Connolly has warned.
The latest insight from The Times stated that while New Look would have shut some stores regardless, the “probable acceleration of closures is a direct result of the significant cost increases announced in October’s budget”.
The New Look boss has shuttered several stores in recent years and the prospect of widespread closures could see the business with a vastly diminished high street presence.
In 2018, the fashion brand traded from almost 600 stores in the UK. Since then, the retailer has overhauled its store estate twice and now has just 364 outlets – all on relatively short leases that link rents to store turnover.
The Body Shop
The Body Shop was plunged into administration in February 2024, resulting in 800 staff members being made redundant.
A staggering 82 shops closed in the weeks that followed the administration, but Aurea Group rescued hundreds of other sites in September 2024.
Some have survived the changes, but the retailer announced that two stores will close this January. The Body Shop will close its 30-year-old Sheffield branch in Orchard Square on January 15.
Meanwhile, a second store will cease trading in Castle Street, Norwich, on the same day. This comes a staggering 44 years after the site first welcomed shoppers.
Matalan
High street staple Matalan closed its store in Chester for good last weekend. The store in Stadium Way near the Greyhound Retail Park ceased trading on January 4.
A spokesperson credited the closure to plans to “redevelop the site”, adding: “Our priority is to support our colleagues and we are working closely with all those affected and where possible offering them alternative positions.”
The Entertainer
Children’s toy chain The Entertainer already closed its store in Edinburgh in early January. The Cameron Toll shopping centre site shut for good on January 4 after 10 years of trading.
Boss Andrew Murphy previously said changes in the Government Budget would affect the firm’s finances, though the exact reason for this closure has yet to be confirmed. However, the toy giant has been forced to axe plans to open two new stores due to the Government changes.
Iceland
The frozen-food speciality supermarket bid farewell to two of its 900 UK stores last weekend. Iceland closed shops in Exeter and Borehamwood on Saturday, January 4.
At 4pm the Shenley Road store in Borehamwood closed for the final time. The Alphington Road Retail Park site in Exeter also closed for the final time on Saturday.
However, shoppers can still get their hands on some Icelandic products at the retail park. This is because some Iceland goods will be sold at The Range store in Exeter, which is opposite the now-closed Iceland store.
Monki
The H&M-owned fashion chain has announced plans to shut two sites in January 2025. One of the shops, located at the Intu shopping centre in Newcastle Upon Tyne, already closed on January 2, just days after welcoming Christmas shoppers. A second in Manchester’s Arndale Centre will cease trading on January 17.
Parent brand H&M plans to close seven Monki stores as it merges the brand with trendy fashion chain Weekday. According to statements, the retailer hopes that blending the stores will create a “new youth destination” for younger shoppers.
Starbucks
Iconic US brand Starbucks will close two of its branches this month.
The coffee house on Dumfries High Street in Scotland will cease trading on Sunday, January 12. Customers will be rerouted to the store on Annan Road, Dumfries, to fulfil their cravings from then onwards.
A spokesperson for the chain said it regularly reviews its portfolio to ensure its stores are relevant for customers.
Meanwhile, a second site located in Cineworld at Sixfields Leisure in Northampton will close for good on January 19. This follows the cinema chain’s announcement that it would close a string of stores.
However, staff at the Starbucks site may be offered positions at nearby stores. A spokesperson said: “We thank our customers for their loyalty over the years and invite them to find their nearest stores in Northampton, Market Square and St James Retail Park.”