New Look reportedly accelerating store closures ahead of incoming Budget

British retailer New Look is believed to be on the verge of accelerating its store closure programme ahead of the UK’s incoming Budget, which will see a number of tax increases fall into place from April.

According to The Times, around a quarter of the retailer’s store network are understood to be at risk when leases expire. This could put a significant portion of its 8,000 strong workforce at risk.

In a statement to the media outlet, a spokesperson for New Look underlined the importance of the company’s store estate for the business, alongside its website and app.

They continued: “We have recently invested over three million pounds in our stores in Greater Manchester to trial new omni-channel initiatives to improve customer experience. Using the learnings from these trials, we are now upgrading a further 17 stores across the country.

“On occasion we do have to close stores, either due to the landlord’s request or because the site becomes unviable. However, we remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate.”

New Look has already carried out somewhat of a restructuring among its retail network, having closed a number of its stores throughout the course of 2023 prior to completing a refinancing.

In its most recent financial year report, it stated that it had reduced its store count from 386 to 356 locations. The company’s operating profit rose to 17.4 million pounds, while its loss before tax narrowed to 3.7 million pounds for the period.