Card and gift retailer Clintons looks set to close more stores amid dwindling footfall and an ‘unpredictable’ trading environment.
In a financial update this week, Clintons said it was grappling with ‘significant cost pressure’ amid higher employer national insurance contributions and wages.
The group said it had continued to close ‘loss-making stores’, adding that its store portfolio now stood at around 170, having been around 1,000 stores in its heyday.
In its last financial year, which ran until the end of June 2024, it shuttered 38 stores and axed over 300 jobs, taking its staff count to 1,415.
During the period, an insolvency court approved a restructuring plan to help keep the retailer on its feet.
Clintons added: ‘The high street continues to be unpredictable and the company is seeing reduced footfall in the stores year on year.
‘The company continues to monitor the performance of the existing estate and to close the poor performing stores, which, whilst impacting on turnover, should improve profitability moving forwards.’
Where next? Card and gifting retailer Clintons looks set to close more stores
While facing some higher costs, the group said its energy costs had begun to ease thanks to a deal in October 2023 ‘representing a material saving compared to the deal for the prior year.’
As a result of Labour’s Budget in October, employer National Insurance contributions have risen from 13.8 per cent to 15 per cent, increasing costs for many businesses.
The wage threshold at which these contributions must start to be paid has been reduced from £9,100 to £5,000.
The national minimum wage has risen to £12.21 per hour. For workers aged 18-20, the minimum wage increased by £1.40 to £10 per hour this month.
Earlier this month, Clintons revealed it returned to profit after enduring a turbulent spell which led to the restructuring plan and store closures.
This month, Clintons in Keighley, West Yorkshire, announced that it will be closing its doors on 14 June.
The list of other stores which could be affected by any future closures remains unknown.
Clintons, which was launched in 1968 and acquired by Cardzone owner Pillarbox Designs in March 2024, announced a pre-tax profit of £8million for the year ending 29 June 2024, against a £5.3million loss the previous year. Sales fell 14 per cent from £96.5million to £82.6million in the period.
This is Money contacted Clintons for comment.
Retailers across Britain face a barrage of higher costs and a highly competitive market, while many shoppers struggle with sparse discretionary income levels.
In February, fashion chain Quiz crashed into administration with the closure of 23 stores and the loss of almost 200 jobs.
The clothing retailer called in administrators before its founding Ramzan family bought back 42 shops, saving around 1,300 jobs.
In March, it was revealed that WH Smith, a staple of UK town centres since the Victorian era, is set to disappear from British high-streets after the firm agreed to sell its shops to Hobbycraft-owner Modella Capital.
The new owner said it will keep the Post Office outlets that operate in many branches, but will rebrand the chain as TGJones.
The WH Smith name is not being sold and will still be used at travel hub outlets that are not for sale.
Last week, the Post Office said it was selling 108 crown branches which are currently directly owned and run by the company.
It will hand over the 108 remaining directly-owned branches to franchisees by the autumn.
Around 1,000 staff working in these branches will be offered a choice to move to work for any new owner or take voluntary redundancy, the Post Office said.
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