More than 10,000 staff on the UK’s high street are at risk of the sack, with thousands of stores set to close in what could be a really brutal year for Britain’s once-loved shopping streets
The UK’s high street has already had a brutal start to 2025. Several major names are under threat of closure, leaving around 10,000 staff members at risk of being left jobless.
It follows on from a grim 2024, which according to new data form the Centre for Retail Research was one of the worst non-pandemic years on record for job losses and store closures. Big names such as Morphe, Monki, Homebase, Ted Baker and Carpetright all disappeared for good, while other major names such as WHSmith, Boots and even supermarket giants Tesco and Sainsbury’s all closed branches over the 12 months.
And the start to 2025 has seen Sainsbury’s look to cull 3,000 staff, fashion brand Quiz potentially disappearing altogether and WHSmith’s entire collection of stores put up for sale – and that’s before we talk about the banks.
The Centre for Retail Research calls it a “permacrisis” which started with the financial collapse of 2008, and added: “Increased prices in 2022 (food rose by more than 10%) led consumers to seek out cheaper retailers and forced most retailers to become more competitive. The whopping increase in energy prices was large enough to have a profound impact on 20%-25% of consumers, so they spent less in shops and on online because they had to pay the higher energy bills.”
The Daily Star has put together what’s been announced so far.
WHSmith
WHSmith bosses are reportedly speaking to several prospective buyers since inviting negotiations weeks ago. The current market value of the whole group globally is a staggering £1.5billion. And now it has been confirmed that one of the UK’s most iconic brands could step in and buy 500 stores.
Bosses of HMV – the brand that disappeared from the high street in 2013 before returning shortly after being taken over – have confirmed they are looking to make the huge purchase.
Owner Dough Putman is said to be in discussions with the owners, although other bidders include Bensons for Beds owner Alteri and Hilco.
Quiz
According to several reports, fast fashion brand Quiz is on the verge of going into administration weeks after removing itself from the London Stock Exchange.
Administrators Teneo could be brought in as soon as next week – leaving 1,500 jobs at risk, as well as all 60 UK stores. The brand currently has 60 stand-alone stores and it could be forced to close many of them in a “pre-pack insolvency move,” Retail Gazette claims, however, once source added that “nothing is being ruled out”.
Sainsbury’s
Sainsbury’s confirmed last week that it will close all in-store cafes and sack 3,000 staff members. In a move branded as something it hopes will “create space for more fresh food ranges,” it has been confirmed around 20% of senior management roles will go, as well as closing the in-store eateries.
The move will see all 61 Sainsbury’s branded “Cafes” close, but food halls run by multiple brands – such as Carluccio’s, Five Guys and Harry Ramsden’s – will remain.
A spokesman said: “The majority of Sainsbury’s most loyal shoppers do not use the Cafés regularly and Cafés and food halls run by specialist partners are becoming more and more popular.”
Lakeland
Kitchenware firm Lakeland was said to be considering putting itself up for a sale this week in a bid to secure its future amid a “challenging” environment for retailers. The company is thought to have appointed financial advisers from consultancy Teneo to explore appetite among speculative buyers.
A spokesperson for the retailer that it was looking at different options having come under pressure from rising costs. “Lakeland is one of the UK’s most loved and trusted brands,” they said. “In response to the challenging retail environment, we are considering a number of options to ensure a sustainable and long-term capital structure, which builds on our 60-year heritage as one of the UK’s most innovative homeware retailers.”
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