AN iconic homeware chain with 59 shops is shutting one of its branches after 10 years.
Lakeland is closing its branch in Inverness, Scotland[/caption]
An exact closure date for the Eastgate Shopping Centre site is yet to be revealed.
However, a spokesperson for Lakeland said the store is relocating and will reopen at the Simpsons Garden Centre just under three miles away in mid-March.
It did not give a reason for the exit.
They added: “The brand new Lakeland store will be located right next to the entrance to the garden centre and staffed by our team of friendly and knowledgeable colleagues.
“We’re excited to welcome customers into store as they enjoy everything the garden centre has to offer.”
The news the branch will be leaving the Eastgate Shopping Centre has not been taken well by customers though.
One said: “That is a blow. That’s a high quality shop.”
Another said: “Another loss for the Eastgate Centre.”
Meanwhile, a third simply said: “Town centre is dying.”
The relocation of the branch comes as Lakeland, which employs around 1,000 staff, scouts out potential buyers.
This closure comes after the retailer, which has 59 shops across all corners of the UK, was reported to be scouting out potential buyers.
The chain, which launched over 60 years ago, last month asked advisory company Teneo for help selling off the business, Sky News reported.
The family-run business was launched 61 years ago and is now spearheaded by the three sons of founder Alan Rayner.
Now, the brothers have selected Teneo to help them navigate a potential sale, city sources told Sky.
Lakeland’s main lender, HSBC, is reportedly being advised by accountancy firm PricewaterhouseCoopers.
RETAIL SECTOR STRUGGLES
The retail sector has been hit hard in recent years as the trend towards online shopping grows.
Shoppers have also been feeling the pinch in recent years following surging inflation which has dented their budgets.
The Centre for Retail Research said in 2024 alone more than 13,000 shops closed across the UK.
It found that 11,341 independent stores were shut during the year, a 45.5% jump against the previous year.
Meanwhile, 2,138 stores were shut by larger chains over the year.
The centre also said it expects 17,350 shops to close in 2025, as businesses battle the double whammy of rising employer National Insurance Contributions (NICs) and the national minimum wage.
WHSmith is one other retailer reportedly on the lookout for buyers as it looks to sell 500 UK high street stores.
Sky News reported in January the retail group had been in talks with a number of prospective buyers of the high street division.
The company’s high street arm comprises roughly 500 stores, employing about 5,000 people across the country.
However, a spokesperson told The Sun there “can be no certainty that any agreement will be reached”.
WHSmith‘s high street division, which recorded flat operating profit of £32m last year, still largely sells greeting cards, books and stationery.
Why are retailers closing shops?
EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre’s decline.
The Sun’s business editor Ashley Armstrong explains why so many retailers are shutting their doors.
In many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping.
Falling store sales and rising staff costs have made it even more expensive for shops to stay open.
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April 2025, will cost the retail sector £2.3billion.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
In some cases, retailers are shutting a store and reopening a new shop at the other end of a high street to reflect how a town has changed.
The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing.
Retail parks are increasingly popular with shoppers, who want to be able to get easy, free parking at a time when local councils have hiked parking charges in towns.
Many retailers including Next and Marks & Spencer have been shutting stores on the high street and taking bigger stores in better-performing retail parks instead.
In some cases, stores have been shut when a retailer goes bust, as in the case of Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop and Wilko to name a few.
What’s increasingly common is when a chain goes bust a rival retailer or private equity firm snaps up the intellectual property rights so they can own the brand and sell it online.
They may go on to open a handful of stores if there is customer demand, but there are rarely ever as many stores or in the same places.
The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year.
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