Major retailer launches closing down sales in stores as seven more to shut before Christmas
A MAJOR retailer has launched closing down sales in a number of stores as it prepares to close seven more sites before Christmas.
Garden centre chain Dobbies is clearing stock before closing a number of sites as part of a major restructuring plan.
Sales have been launched in sites in Altrincham, Harlestone Heath, Gosforth, Inverness, Reading, Stratford-upon-Avon and Huntingdon.
Bargain hunters have shared pictures of the huge discounts on offer including 70% off homeware as well as deals on plants, garden equipment, toys, gifts and Christmas decorations.
One posted pictures of shelves of discounted items and said: “Lots of sale items in Dobbies Garden Centre!”
Another added: “50% of almost everything.”
Dobbies was given the green light to go ahead with the closure of 12 sites last week, when creditors voted in favour of its plan.
In a statement, the firm said the move will enable Dobbies to return to “sustainable profitability and unlock access to “future investment”.
Sites in Pennine, Gloucester and King’s Lynn closed their doors for good this weekend, with seven more to close before Christmas.
Those closing in the next week, including two sites shutting tomorrow, are:
- Altrincham – December 17
- Harlestone Heath – December 17
- Gosforth – December 19
- Inverness – December 23
- Reading – December 23
- Stratford-upon-Avon – December 23
- Huntingdon – December 23
Two additional garden centres in Morpeth and Stapleton are planned to be moved to other garden centre operators.
Closing down sales have been launched at both sites, but closure dates are yet to be confirmed.
In November Dobbies also shut six of its smaller format Little Dobbies locations.
The group will continue to operate around 60 stores across the UK.
TROUBLE FOR DIY AND GARDEN STORES
High inflation coupled with a squeeze on consumers’ finances has meant people have less money to spend in the shops.
Garden centres and home improvement businesses also boomed during the pandemic when customers were stuck at home.
But customers have been forced to cut back on spending since due to high inflation and a national cash crunch.
This has led to prominent chains going bust.
Late last month, Homebase said it would put 74 sites up for sale after it crashed into administration.
However, its administrators were able to strike a deal to sell the business to retail group CDS, which owns bargain chains The Range and Wilko.
This secured the jobs of 1,600 employees and 70 stores – all of which are set to be rebranded as The Range shops.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories