In a significant setback for the UK high street, Select Fashion, a well-known fashion retailer, has announced plans to close 35 of its stores by mid-March 2025. This move is part of the company’s ongoing financial restructuring efforts following its entry into administration in 2019. The closures will leave Select with just 48 stores nationwide, a dramatic reduction from the 169 locations it once operated. The decision reflects the broader challenges facing the UK retail sector, which continues to grapple with high inflation, changing consumer behavior, and the growing dominance of online shopping.
Details of the Store Closures
Which Stores Are Closing?
Select Fashion confirmed that 35 stores will be shutting their doors within the next few weeks, affecting branches across various regions, including:
- Southampton
- Eastleigh
- Hartlepool
- Romford
- Hull
The complete list of affected stores has been shared with employees and local communities, with clearance sales already underway. The closures are expected to result in job losses, impacting hundreds of retail workers across the country.
Timeline and Reasons for the Closures
The store closures are scheduled to be completed by mid-March 2025. Select Fashion has been gradually reducing its store portfolio since January as part of a strategic effort to streamline operations and cut costs.
A spokesperson for Select Fashion stated:
“These closures are a necessary step in our financial restructuring process. We are committed to supporting our employees during this transition.”
The company cited rising operational costs, high business rates, and declining foot traffic as key reasons for the closures. Additionally, the shift towards online shopping has significantly impacted in-store sales, prompting the need to focus on digital retail channels.
Financial Troubles and Restructuring Efforts
Background: Entering Administration
Select Fashion first entered administration in 2019 after struggling with mounting debts and declining sales. The company managed to secure a rescue deal that allowed it to continue trading with a reduced store portfolio. However, the COVID-19 pandemic and ongoing economic challenges have further strained its financial health.
Restructuring Strategy
As part of its restructuring efforts, Select Fashion has been focusing on:
- Optimizing its store portfolio by closing underperforming branches.
- Enhancing its online presence to adapt to changing consumer shopping habits.
- Reducing operational costs through strategic cost-cutting measures.
The decision to close 35 stores reflects the company’s strategy to focus on more profitable locations and strengthen its digital retail platform.
Impact on UK High Street and Retail Workers
A Major Blow to the High Street
Select Fashion’s decision to axe 35 stores adds to the growing list of high street casualties in the UK. The closures are a stark reminder of the challenges facing traditional brick-and-mortar retailers amid the rapid rise of e-commerce and changing consumer behaviors.
According to the British Retail Consortium, more than 13,000 retail stores shut their doors in 2024 alone, and the trend is expected to continue in 2025. High inflation, increased business rates, and reduced consumer spending power have contributed to the ongoing decline of the UK high street.
Job Losses and Economic Impact
The store closures are expected to result in significant job losses, affecting hundreds of employees. The company has pledged to provide support and guidance to affected workers, including assistance with job placement and redundancy packages.
Union representatives have expressed concerns about the growing number of retail job losses, calling for government intervention and support for high street businesses.
Linda Brown, a retail worker at one of the affected stores, shared her concerns:
“We were given notice about the closure, but it’s still devastating. Many of us have been here for years, and finding a new job won’t be easy.”
Challenges Facing the UK Retail Sector
High Inflation and Rising Costs
The UK retail industry is struggling with high inflation, which has led to increased operational costs, including rent, utilities, and wages. The recent rise in employer National Insurance contributions and the higher minimum wage rate have further strained retailers’ finances.
Shift to Online Shopping
The shift towards online shopping, accelerated by the COVID-19 pandemic, has significantly impacted brick-and-mortar stores. Consumers increasingly prefer the convenience of e-commerce, leading to declining foot traffic and in-store sales.
Competitive Market and Changing Consumer Behavior
The UK fashion retail market is highly competitive, with fast fashion brands, online retailers, and international giants like Zara and H&M dominating the industry. Changing consumer behavior, including a growing preference for sustainable and budget-friendly fashion, has also affected traditional retailers like Select Fashion.
Broader Implications: More Store Closures to Come?
High Street Retailers Under Pressure
Select Fashion is not the only retailer facing difficulties. Other high street brands are also struggling to stay afloat:
- New Look is set to close its Preston store on March 20, with approximately 91 branches at risk nationwide.
- Quiz Clothing has entered administration, leading to the closure of 23 stores and putting around 200 jobs at risk.
Ongoing Decline of the High Street
The continued decline of the UK high street has led to:
- Vacant storefronts and declining footfall in shopping districts.
- Reduced local economic activity, impacting small businesses and local communities.
- Shifting urban landscapes, as property owners repurpose commercial spaces for residential and mixed-use developments.
The Future of UK Retail
Experts predict that the retail landscape will continue to evolve, with more store closures expected in 2025. Retailers are being forced to adapt by:
- Investing in e-commerce platforms and omnichannel retail strategies.
- Redefining in-store experiences to attract consumers back to physical stores.
- Exploring new retail models, such as pop-up shops and flexible leases.
The British Retail Consortium has urged the government to address high business rates and support the revitalization of the high street to prevent further closures.
Conclusion: A Turning Point for UK Retail
Select Fashion’s decision to close 35 stores marks yet another blow to the UK high street, highlighting the ongoing challenges faced by traditional retailers. As the retail industry continues to adapt to economic pressures, changing consumer behaviors, and digital transformation, the future of brick-and-mortar stores remains uncertain.
While Select Fashion focuses on its financial restructuring and online growth, the closures serve as a stark reminder of the shifting retail landscape. As high street vacancies rise and job losses mount, the need for strategic innovation and government intervention becomes more critical than ever.
FAQs
1. Why is Select Fashion closing 35 stores?
The closures are part of Select Fashion’s financial restructuring plan, aimed at cutting costs and focusing on more profitable locations due to rising operational expenses and declining in-store sales.
2. Which stores are affected?
Stores in Southampton, Eastleigh, Hartlepool, Romford, Hull, and other regions are set to close by mid-March 2025.
3. How many jobs will be affected?
Hundreds of retail workers are expected to lose their jobs as a result of the store closures.
4. Is Select Fashion going out of business?
No, Select Fashion is not going out of business but is reducing its physical store portfolio to focus on digital retail channels.
5. What does this mean for the UK high street?
The closures reflect the broader decline of the UK high street, driven by high inflation, rising costs, and the shift to online shopping. More store closures are expected in 2025.
