New Look: UK fashion retailer confirms first shop closure amid fears nearly 100 more stores could close next

• New Look has confirmed the closure of its Wickford store, with speculation of up to 100 more closures
• The closures are linked to upcoming National Insurance increases, higher minimum wage, and rising business rates
• Around 91 of New Look's 364 stores are reportedly at risk when leases expire, impacting its 8,000 employees
• Other UK retailers, including Next, have warned of price hikes due to the Budget measures

A major UK fashion retailer with hundreds of stores nationwide has confirmed that one of its branches will close amid speculation nearly 100 more could shutter in the future.

Earlier this week, it was reported that New Look is accelerating plans for mass store closures, spurred on by the upcoming increase in National Insurance, which is due to take effect from April.

From 1 April, employers will be required to pay National Insurance at a rate of 15%, up from 13.8%, with the threshold for paying the tax also being lowered.

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This, along with an increase in the minimum wage due to take effect at the same time and rising business rates, have led retailers and other businesses to panic over potential cost increases.

According to The Times, around a quarter of New Look's 364 stores are at risk when their leases expire, equating to about 91 stores. This could have a substantial impact on the company’s 8,000-strong workforce.

For now, stores remain open as usual, and no final decisions regarding closures have been made.

That’s true everywhere, apart from Wickford in Essex, where the fashion retailer will shut its store in just a few weeks - the branch will welcome customers for the final time on Friday 24 January.

A spokesperson for the chain said that the closure of the Wickford branch was "at the landlord's request."

Earlier this week, another British fashion brand announced plans to raise prices and warned of slowing sales growth in 2025 in response to the impact of the recent Budget measures.

To offset a predicted financial burden, Next has said that it will implement an "unwelcome" 1% price hike. The change means that the price of this Halston Bell Sleeve Maxi Dress will increase by almost 10 pounds (£8.09).

In an open letter to Rachel Reeves last year, over 70 businesses, including Tesco, Asda, and Sainsbury's, said that the changes announced in the Autumn Budget make price hikes "a certainty."

What do you think about New Look's store closures and the impact of the upcoming budget changes on retailers? Do you expect more businesses to follow suit with price hikes or closures? Share your thoughts in the comments section.