A MAJOR discount chain with 825 stores is set to shutter a seaside branch after just three years.
Shoppers were devastated to learn their local discount retailer branch will be waving goodbye forever.
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The Poundland site, located in Broadstairs, Kent, has welcomed customers since September 2022.
But the company announced they will be forced to close down at the end of June after failing to get a long-term lease.
It will see the 18 full and part-time staff out of jobs, unless they’re transferred to different stores.
The budget chain does have three nearby branches at Westwood Cross Retail Park, Margate High Street and Ramsgate High Street.
A spokesperson said: “I’m afraid we’ve been unable to secure a long-term lease that would enable us to keep trading and we know how disappointing this will be to customers and colleagues.
“Whenever we close a store in circumstances like these, we do all we can to look for other opportunities for colleagues and that work is now underway and we hope to be able to accommodate colleagues at nearby stores.
“We’d like to thank customers in Broadstairs for their continued support – we look forward to serving them over the next three months in Broadstairs and welcoming them after that, to our nearby stores at Westwood Cross Retail Park, Margate High Street and Ramsgate High Street.”
This comes after we reported a significant number of Poundlands could be axed as part of a proposed sale, reports say.
The company is said to have hired advisory firm Teneo to oversee the sale.
A spokesman for Pepco Group, which is the parent company of Poundland, told the Telegraph: “As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business.
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.
However, additional costs have added further pain to an already struggling sector.
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April will cost the retail sector £2.3billion.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year.
It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR said: “The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025.”
It comes after almost 170,000 retail workers lost their jobs in 2024.
End-of-year figures compiled by the Centre for Retail Research showed the number of job losses spiked amid the collapse of major chains such as Homebase and Ted Baker.
It said its latest analysis showed that a total of 169,395 retail jobs were lost in the 2024 calendar year to date.
This was up 49,990 – an increase of 41.9% – compared with 2023.
It is the highest annual reading since more than 200,000 jobs were lost in 2020 in the aftermath of the COVID-19 pandemic, which forced retailers to shut their stores during lockdowns.
The centre said 38 major retailers went into administration in 2024, including household names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright and Ted Baker.
Around a third of all retail job losses in 2024, 33% or 55,914 in total, resulted from administrations.
Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes.
Professor Bamfield has warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.”
“We have started to work with advisers to support us with this process.”
Pepco previously said it was looking at “all strategic options” to separate Poundland from its brand.
The Polish group said it might turn its focus to its more profitable businesses in Europe.
Pepco previously warned that upcoming hikes to employer National Insurance Contributions (NICs) and national minimum wage would significantly add to its costs.
Chancellor Rachel Reeves said during her autumn statement last year that she would raise employers’ National Insurance contributions (NICs) from 13.8% to 15%.
She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.
It’s estimated that the move will raise £25billion, costing the equivalent of around £800 per employee for businesses.
Late last year, it was revealed that profits at Poundland also tumbled by £641million in the year to September, with bosses again blaming slow sales amid a poor outlook thanks to measures set out by Reeves.
More recently, Poundland also saw revenue fall by 9.3% for the three months to December.
At the start of the year, the retailer said it would increase the number of items which cost £1 or less from around 1,500 to almost 2,400 to appeal to cash-strapped shoppers.
It comes as other retailers, both independent and industry giants, continue to struggle.
Dozens of shops are set to close across the country before the end of the month in the latest blow to UK high streets.
Just a few months in to 2025 and it’s already proving to be another tough year for many major brands.
Rising living costs – which mean shoppers have less cash to burn – and an increase in online shopping has battered retail in recent years.
Just this week former staple of the high street Quiz crashed into administration with the immediate closure of 23 stores.
New Look bosses made the decision to axe nearly 100 branches as they battle challenges linked to Autumn Budget tax changes.
Approximately a quarter of the retailer’s 364 stores are at risk when their leases expire.
This equates to about 91 stores, with a significant impact on New Look’s 8,000-strong workforce.
It’s understood the latest drive to accelerate closures is driven by the upcoming increase in National Insurance contributions for employers.
The move, announced by Chancellor Rachel Reeves in October, is expected to hit retailers hard – and the British Retail Consortium has predicted these changes will create a £2.3billion bill for the sector.
Meanwhile, the WHSmith brand name looks set to vanish from British high streets after 230 years.
Read more on the Scottish Sun
In a fresh update, Boots UK also told The Sun that 253 stores have now shut as part of cost-cutting plans.
And, Homebase launched a big closing down sale as two more stores will shut amid 35 closures this month.
RETAIL PAIN IN 2025
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs will cost the retail sector £2.3billion.
Research by the British Chambers of Commerce shows that more than half of companies plan to raise prices by early April.
A survey of more than 4,800 firms found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024.
Three-quarters of companies cited the cost of employing people as their primary financial pressure.
The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year.
It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR said: “The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025.”
Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.”