Fashion retailer River Island is set to close 35 of its UK stores in the coming months, a move that comes as the company grapples with increasing financial pressures. The restructuring plan, approved by the High Court, will see one Welsh branch cease operations. This significant reduction in its physical footprint is attributed to a combination of declining sales, rising operational costs, and a broader shift in consumer shopping habits towards online platforms.
Key Takeaways
- River Island will close 35 stores across the UK.
- One store in Wales is among the affected locations.
- The closures are part of a restructuring plan due to financial difficulties.
- The company reported a £33.2 million full-year loss and a 19% drop in sales.
- Negotiations are underway to secure rent reductions at 71 other outlets.
Financial Difficulties and Restructuring
River Island has experienced mounting financial difficulties in recent years. Its latest financial accounts revealed a substantial £33.2 million full-year loss, accompanied by a 19% decrease in sales. This downturn has necessitated a significant restructuring of the business. The company is also in discussions with landlords to achieve rent reductions at 71 of its remaining 207 stores across the UK.
Store Closures and Impact
The initial plan announced in June indicated the closure of 33 stores in January. This number has since been revised, with the Southside shopping centre branch in Wandsworth, London, added to the list. Prior to this, a store in Omagh, Northern Ireland, closed on September 22, with a clearance sale preceding its shutdown. Employees at the Omagh branch expressed their disappointment on social media, thanking loyal customers for their support over the years.
Reasons Behind the Closures
Chief Executive Ben Lewis stated that the extensive portfolio of stores is no longer aligned with customer needs, citing the well-documented migration of shoppers from high streets to online channels. He also highlighted the sharp increase in the cost of doing business over the past few years as a significant contributing factor to the financial burden. Lewis emphasised that the company has a clear strategy to transform the business for long-term viability, with recent improvements in fashion offerings and in-store experiences showing positive results. He expressed regret over any job losses resulting from the closures and pledged to minimise them.
List of Affected Stores
The 35 stores slated for closure include:
- Beckton
- Bangor Bloomfield
- Wrexham
- Edinburgh Princes Street
- Hereford
- Surrey Quays
- Didcot
- Sutton Coldfield
- Aylesbury
- Burton-Upon-Trent
- Northwich
- Taunton
- Workington
- Falkirk
- Cumbernauld
- Kirkcaldy
- Gloucester
- Hartlepool
- Brighton
- Lisburn
- Norwich
- Oxford
- Poole
- Kilmarnock
- Hanley
- Barnstaple
- Grimsby
- Leeds Birstall Park
- Rochdale
- Great Yarmouth
- St Helens
- Stockton-on-Tees
- Perth
- Wandsworth
- Omagh
Sources
- Fashion retail giant with over 200 stores in UK to close 35 including one in Wales, Wales Online.
- Major UK retailers announce store closures, Retail Insight Network.
