High street fashion giant with over 350 branches announces ‘devastating’ closure of store as it launches huge sale
A HIGH street fashion chain is set to close one of its stores for good within days.
New Look has confirmed that its branch at at the Team Valley Retail World in Gateshead, Tyne and Wear will shutter next month.
The store announced they would welcome in punters for the final time on March 9 in a poignant note to customers on Facebook.
The reason for the closure is not known.
Customers have flocked to social media to vent their frustration.
"This is devastating," one wrote.
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A second weighed in: "This is terrible, so many closures in the area!"
What's happening at New Look?
New Look is ramping up a store closure programme ahead of April's National Insurance hike.
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 it's 8,000 strong workforce.
The company has restructured its store estate twice in the past six years, reducing its portfolio from around 600 UK stores in 2018.
For the time being, stores remain open as usual, and no final decisions regarding closures have been made.
The move to accelerate store closures is understood to be driven by the forthcoming increase in National Insurance, announced by Chancellor Rachel Reeves in October.
Employers currently pay NICs for most workers earning more than £9,100 a year.
The sum they pay is the equivalent of 13.8% of the employee's earnings above that threshold.
For an employee earning £30,000, the employer would pay NICs of £2,884.20.
However, in the Autumn Statement, the Treasury announced it would increase the tax rate to 15% and reduce the threshold at which firms must pay to £5,000.
The British Retail Consortium has predicted that these changes will create a £2.3billion bill for the sector.
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."
A New Look spokesperson said: "Our store estate is an important part of our business, alongside our best-in-class website and app.
"We have recently invested over £3million in our stores in Greater Manchester to trial new omnichannel initiatives to improve customer experience.
"We also continue to invest in our thriving online platform which has resulted in a strong online sales performance, with volumes significantly outpacing last year and an improved online margin."
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"On occasion we do have to close stores, either due to the landlord’s request or because the site becomes unviable.
"However, we always remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate."
HISTORY OF NEW LOOK
FOUNDED in 1969 by Tom Singh with a modest loan of £5,000 from his parents, the first shop opened in Taunton, Somerset.
Singh's vision was simple but revolutionary: to offer the latest fashion trends at accessible prices.
This focus on "fast fashion" proved a winning formula, propelling the brand's rapid growth throughout the following decades.
By the 1990s, New Look had expanded significantly, growing from 200 to an impressive 1,000 stores.
This period saw the introduction of new lines, including menswear, teen, and maternity wear, further broadening the brand's appeal.
Embracing the digital age, New Look launched its online store in 2007, bringing its trendy offerings to an even wider audience.
The brand's success wasn't confined to the UK. New Look expanded internationally, establishing a presence in numerous countries across Europe, Asia, and the Middle East.
At its peak, the company boasted over 900 stores internationally and employed over 18,000 staff.
New Look's ownership structure has also evolved over the years. In 2004, the company went private, with founder Tom Singh, chief executive Phil Wrigley, and private equity investors taking the reins.
In 2015, South African investment firm Brait SE acquired a 90% stake in New Look for £780 million, with the Singh family and management retaining the remaining 10%.
Tom Singh himself announced his departure from the company in 2019, marking the end of an era for the brand he built.