Several major UK retailers are closing stores this week as rising operational costs and changes in shopping habits put pressure on physical stores.
Chains including Hobbycraft, The Original Factory Shop, Sony Centre and Poundland are among those shutting locations, with some offering closing-down sales of up to 70% off.
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Hobbycraft closes multiple branches
Hobbycraft, the arts and crafts retailer, closed its Crayford store on 20 September, following earlier closures in Maidenhead and Chichester. The company said the closures form part of a restructuring strategy.
All stores affected by the shutdown are running significant discounts to clear remaining stock.
Original Factory shop and Sony Centre scale back
The Original Factory Shop is closing its Market Drayton branch in Shropshire, continuing a series of store closures this year. The chain plans to shut 28 outlets in total, with clearance sales offering up to 50% off.
Meanwhile, the Sony Centre in Falkirk, which opened in 2003 as part of the Graham Robertson Electrical group, is closing after 22 years in business. Rising operating costs and a continued shift toward online shopping were cited as factors in the decision.
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By GlobalDataA final sale is underway to clear stock before the store shuts.
Poundland and wider retail pressures
A Poundland store in Portsmouth is closing on 20 September due to lease issues, though the chain has not linked it to a broader restructuring.
The closures highlight broader challenges in the UK retail sector. The British Retail Consortium estimates that higher employer National Insurance contributions will add £2.3 billion in costs this year.
Research by the British Chambers of Commerce suggests that more than half of UK businesses expect to raise prices in the near future, citing higher energy bills, rent and staff costs.
The Centre for Retail Research predicts approximately 17,350 UK retail sites could close in 2025, potentially leading to 202,000 job losses.
Analysts say that rising costs, reduced footfall and the growing popularity of online shopping are creating a difficult environment for physical stores, particularly those relying on discretionary spending.
