---
title: "New Look Store Closures Accelerate as Budget Impact Hits Retail Sector Hard"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2025-01-06T06:03:52+00:00"
modified: "2025-01-06T06:03:52+00:00"
date: 2025-01-06
canonical: "https://stockmark.it/new-look-store-closures-accelerate-as-budget-impact-hits-retail-sector-hard/"
category: "Food Industry"
categories: ["Food Industry", "Inflation", "Retail"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/1735901289282_xnSQ8F1Q.jpg?fit=1024%2C576&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# New Look Store Closures Accelerate as Budget Impact Hits Retail Sector Hard

**Published:** January 6, 2025
**Author:** Stockmark.IT Website
**Categories:** Food Industry, Inflation, Retail
**Featured image:** ![Woman in stylish grey coat in a luxury clothing store. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/1735901289282_xnSQ8F1Q.jpg?fit=1024%2C576&quality=89&ssl=1)

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British fashion retailer New Look is poised to speed up its store closure programme whilst major food producer 2 Sisters pushes supermarkets to absorb substantial cost increases, as the ripple effects of Labour’s tax-raising budget continue to impact large employers across multiple sectors.

Industry sources reveal approximately 25% of New Look’s 364 UK stores face potential closure as leases expire, threatening significant redundancies within its 8,000-strong workforce. While some store closures were inevitable, the hastened pace of shutdowns directly stems from the considerable cost increases unveiled in October’s budget.

Starting April, employers will face a national insurance rate increase to 15% from 13.8%, coupled with a reduction in the payment threshold from £9,100 to £5,000. The minimum wage is set to climb 6.7% to £12.21 hourly, whilst the retail sector confronts a £140 million business rates increase.

These mounting pressures have prompted 2 Sisters Food Group, Britain’s largest chicken producer, to attempt passing the full budget impact onto supermarkets, raising concerns about renewed food inflation. Labour-intensive food industry operations will bear the brunt of rising employment costs, with analysts at CreditSights estimating the budget will add at least £30 million to 2 Sisters’ annual expenses.

New Look’s chief executive Helen Connolly oversees a dramatically reduced high street presence compared to 2018 when the retailer operated nearly 600 stores. Through two restructuring programmes, the chain now maintains 364 outlets, each operating under turnover-linked rental agreements.

The Centre for Retail Research projects 17,350 shop closures throughout 2025, marking a significant increase from approximately 13,500 closures in the previous year. This trend suggests other retailers may follow New Look’s strategy unless substantial rent reductions can be negotiated with property owners.

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**Original URL:** https://stockmark.it/new-look-store-closures-accelerate-as-budget-impact-hits-retail-sector-hard/
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