MAJOR retailers will close several stores for good this month as the high street continues to face difficulties.
This year businesses have faced increased costs due to Government changes announced in the Budget.
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An increase in employer National Insurance contributions, energy and rent costs and lower customer footfall have all piled on pressure.
As a result, some retailers have been forced to hike prices, review expansion plans and reduce the number of stores they have.
But remember, retailers regularly close shops for a number of reasons, not just because they are struggling.
For example, they may have a nearby store that is performing better or may want to move to a location that will have a higher footfall, such as a retail park.
Read more on store closures
Here is a full list of the shops we know are shutting in June 2025.
The Original Factory Shop
The discount high street chain is set to close nine shops next month as it prepares to shutter a total of ten branches in the coming weeks.
The Original Factory Shop previously warned it would have to shut some “loss-making” locations after it began to struggle in recent years.
The retailer is now set to close the following shops this month:
- Milford Haven, Pembrokeshire – June 26
- Perth – June 28
- Chester Le Street, County Durham – June 28
- Arbroath, Angus – June 28
- Kidwelly, Carmarthenshire – June 28
- Pershore, Worcestershire – June 28
- Normanton, West Yorkshire – June 28
- Peterhead, Aberdeenshire – June 28
- Shaftesbury, Dorset – June 28
It will also close a store in Staveley, Cumbria on July 12.
Private equity firm Modella bought The Original Factory Shop back in February and has since launched a restructuring effort to renegotiate rents at 88 The Original Factory Shop stores.
Modella also recently bought Hobbycraft and WHSmith’s high street shops.
Poundland
Poundland is set to close a store this week as a further 200 shops remain at risk.
The bargain retailer is set to close its branch in Surrey Quays, London, on June 11.
Why are retailers closing shops?
EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre’s decline.
The Sun’s business editor Ashley Armstrong explains why so many retailers are shutting their doors.
In many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping.
Falling store sales and rising staff costs have made it even more expensive for shops to stay open.
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April 2025, 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.
In some cases, retailers are shutting a store and reopening a new shop at the other end of a high street to reflect how a town has changed.
The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing.
Retail parks are increasingly popular with shoppers, who want to be able to get easy, free parking at a time when local councils have hiked parking charges in towns.
Many retailers including Next and Marks & Spencer have been shutting stores on the high street and taking bigger stores in better-performing retail parks instead.
In some cases, stores have been shut when a retailer goes bust, as in the case of Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop and Wilko to name a few.
What’s increasingly common is when a chain goes bust a rival retailer or private equity firm snaps up the intellectual property rights so they can own the brand and sell it online.
They may go on to open a handful of stores if there is customer demand, but there are rarely ever as many stores or in the same places.
The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year.
Bidding for the business started last month.
Gordon Brothers, the ex-owner of Laura Ashley, and Homebase owner Hilco are reported to be in a two way race to win the chain.
A decision on who the preferred bidder is could be announced in the coming days.
Polish retail giant Pepco said it expects the sale of Poundland to be completed by September.
Daniel of Ealing
The iconic department store will close its doors for good in June after 120 years on the high street.
The retailer has launched a huge clearance sale, with up to 50% off beds, furniture, homeware and fashion.
Its final day of trading will be June 8.
Rising costs and a struggling high street have forced the family-run business to call time on the store.
The business was founded in 1901 by Walter James Daniel and began as a small draper’s shop in Ealing, London.
The Windsor flagship shop will remain open, alongside its online business.
The firm said five Daniel employees will be impacted by the closure.
The Works
The Works is set to close its Margate High Street store on June 8.
Its next nearest store will be at the Westwood Cross Shopping Centre or Ramsgate Garden Centre.
A spokesperson for The Works said: “As part of ongoing plans to optimise our store portfolio, we will be closing our Margate store.
“We have loved being part of the local community and apologise for any inconvenience caused by this closure.
“Customers can continue to shop with us at our nearby stores at Westwood Cross Shopping Centre and Ramsgate Garden Centre.”
The chain has already closed five other branches this year.
These closures are part of the normal process of closing under performing sites.
Iceland
The supermarket chain will close its store in College Square, Margate, on June 21.
Iceland has not yet confirmed the reason for the sudden closure but it said that staff at the Margate branch will be offered jobs within the business.
Iceland is completing a broader reshuffle of its operations as it adapts to shifting consumer habits, cost pressures and the growing demand for convenience and online shopping.
Ginger
The much loved clothing shop will close its doors for good this month after nearly 50 years in business.
Ginger will shut for good on June 7, after the owners said they were forced to make an “incredibly difficult decision”.
The shop was founded by David and Rodger Kingsley in 1978 following the success of their sister company Jonathan Trumbull in 1971.
The store manager blamed the current economic climate and the aftermath of Covid-19 for the business’s hardship.
The shop has launched a closing down sale as it prepares to close.
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