January 6th 2025.
Mannequins stood tall and proud, showcasing the latest fashion trends at a New Look store. The popular fashion brand, known for its trendy and affordable clothing, has been making headlines for its plans to close down some of its stores. According to reports, New Look is accelerating its closure plans due to the impact of the government's National Insurance rise.
The retailer, which currently has 364 shops across the UK, is facing increased costs as a result of the National Insurance hike. It is estimated that around a quarter of New Look's stores, approximately 91 branches, are at risk of closure when their leases expire. This could potentially affect the jobs of 8,000 employees.
While some stores were already scheduled to close due to lease expirations, the process is now being expedited as a direct result of the budget's cost increases. This is not the first time New Look has undergone restructuring, as they have previously reduced their store count from 600 in 2018.
Despite these reports, New Look has not made any final decisions regarding store closures. For now, all stores remain open and the brand continues to be a familiar sight on the British high street.
The decision to accelerate store closures was prompted by the rise in employment costs announced by Chancellor Rachel Reeves in October. A spokesperson for New Look emphasized the importance of their omni-channel approach, which includes both physical stores and their online platform. They have recently invested millions in their stores to improve their customer experience and will continue to do so in the future.
New Look holds a significant presence in the UK fashion market, ranking second for overall women's wear market share in the 18 to 44 age range. With over 10 million customers shopping through their stores, app, and online platform, the brand is a popular choice for fashion lovers. Their online platform has seen significant growth, with over 246 million site visits in the last financial year.
The spokesperson also clarified that while store closures do happen from time to time, New Look is always on the lookout for new opportunities and continues to invest in their existing store estate. However, the National Insurance rise announced in the budget has raised concerns about the financial burden it will place on employers.
Experts predict that many businesses will struggle to keep their staff due to the increased costs. Chancellor Reeves has defended the tax increase, stating that it is necessary to improve the country's financial situation. As the impact of the National Insurance rise continues to unfold, many are left wondering what it will mean for their finances.
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