Legendary department store chain to shut doors of ‘huge’ branch for good TODAY
A BELOVED department chain is to shut the doors of one of its “huge” branches for good today.
The retail giant has operated the store for over 25 years in a busy shopping centre, but the owners have decided it is time to close it down.
House of Fraser pulled down the shutters on its Bluewater branch on Wednesday, November 27.
The department store had been operated out of a large unit which occupies two floors in the Greenhithe shopping centre for years.
Despite shoppers describing the closure as an “end of an era”, they were given a goodbye gift in the form of a 20 per cent discount on in-store buys before it officially shut.
Next is strongly tipped to take over the unit.
Elsewhere in the business, House of Fraser’s has decided to keep its Darlington branch open amid concern over its future.
A spokesperson from the retailer said: “We’re pleased to confirm that House of Fraser Darlington will remain open and is operating business as usual.
“We’re looking forward to continuing to welcome our valued customers to this location.”
It comes after a number of the department store’s shops have dramatically closed down in recent years.
House of Fraser was saved from collapse by billionaire businessman Mike Ashley back in 2018.
But while the deal saved the chain’s 59 stores and 17,000 workers who were facing the axe many more stores have closed in recent years.
Today just 28 department stores remain with the closure of the Bluewater branch dropping this number even further.
Over the past few months, the chain has called time on several of its shops.
One in Cabot Circus shopping centre, Bristol, was gone in August
Birmingham, Cardiff and Guildford all saw closing down signs plastered across the windows.
Shoppers were rushing to the sales as the branches prepared to shut for good.
Last autumn, Frasers Group chief executive, Michael Murray, described House of Fraser as a “broken business” and said it is likely to “diminish”.
Mr Murray added that the group’s strategy was to break away from the traditional operating model of operating department stores.
He told The Telegraph: “We’ve completely changed the operating model.
“It was mostly concession, the stores were way too big, and they were under-invested.
“Our future vision is that House of Fraser will diminish and Frasers will grow.”
What else is happening to Frasers Group chains?
It’s not just House of Fraser shops shutting, other Frasers Group chains have been decreasing their store numbers too.
Frasers announced plans to close down a popular fashion chain USC’s branch in Stoke-on-Trent this summer.
The firm also shut a USC branch in Stockton-on-Tees in December last year after launching a closing down sale.
And House of Fraser, also owned by Frasers Group, closed its store in Carlisle in May.
A Flannels site – also under Frasers – in Bolton, closed for the final time in the new year.
And MatchesFashion – an online fashion website – fell into administration in March this year before shutting down forever in June.
But it has opened new stores across the UK as well.
Shoppers have been visiting their “new concept” stores which sell brands from across the group including Sports Direct and Jack Wills.
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.