3,080 UK Stores Shut Down in 2025 as Retail Sector Struggles

In 2025, the UK retail landscape experienced a dramatic contraction, with the closure of 3,080 stores and the loss of 30,153 jobs. This surge in high street collapses, affecting 54 retailers, is detailed in a report by the Centre for Retail Research. The closures represent a significant blow to the industry, as retail sales growth remains 3.3% below pre-pandemic levels, according to data from the House of Commons.

The list of brands that have succumbed to these challenging conditions includes household names and iconic retailers. Among the most notable is Claire’s, the popular jewellery and piercing retailer. After declaring bankruptcy in the United States in August, the company’s struggles were attributed to increased competition and declining foot traffic. While Modella Capital acquired 156 of Claire’s stores, it also led to the closure of 145 locations, impacting more than 1,000 jobs.

In March, WH Smith, a newsagent with Victorian roots, announced it would exit the high street altogether, agreeing to sell its shops to Modella Capital. Following this decision, 20 stores were closed, and the remaining high street locations will be rebranded as TG Jones.

Fashion retailer Quiz Clothing faced a significant setback at the beginning of the year, entering administration and closing 23 stores, resulting in 191 job losses. However, the company has shown resilience, reporting a 14% increase in like-for-like store revenues between July and August. In October, it announced plans to open 5 to 10 new stores within the next year.

Another casualty in the retail sector was Bodycare, a British beauty chain that shut down 32 stores and laid off 250 employees after entering administration in September. Founded as a market stall in Lancashire in the 1970s, Bodycare faced rising costs and declining consumer spending. Fortunately, an investment group led by Charles Denton, former CEO of The Body Shop, has stepped in to revive the brand, with plans to relaunch between 30 and 50 stores in early 2026.

The fashion industry continued to feel the pinch, with Select Fashion going bust in April and closing 35 outlets. Employees were informed via email about the company’s financial troubles, which followed a Company Voluntary Arrangement (CVA) initiated the previous summer.

Meanwhile, New Look has been proactive in addressing its challenges by seeking to downsize its high street presence. In August, the company announced it would close 41 stores but remains operational with 338 locations across the UK.

As the downward trend in retail persists, River Island is set to close 33 stores by the end of November 2025. Major locations affected include Edinburgh and Leeds. The company has cited a shift in consumer behaviour towards online shopping as a significant factor in its struggles.

The discount retailer Poundland narrowly avoided complete collapse by agreeing to a turnaround plan just before running out of funds. New owners, Gordon Brothers, purchased the chain for £1 in June and plan to invest £90 million to revive the business. This plan included the closure of 68 shops and the loss of 1,000 jobs.

Among other notable closures this year, Monki, a brand under H&M, closed its seven UK stores. Hobbycraft did not go into administration but has undertaken a strategic review, resulting in the closure of 27 stores in 2025.

The home improvement sector also faced challenges, as Homebase shut 65 shops after entering administration late in 2024. The company has attributed its struggles to a decline in consumer confidence post-pandemic.

Even the food and beverage sector is not immune. Starbucks announced a restructuring plan, leading to the closure of 10 locations in October. Similarly, Brewdog and Leon have also shut down multiple outlets as part of their restructuring efforts.

Finally, Pizza Hut confirmed in October that it would close 68 of its UK restaurants following its franchise operator’s entry into administration. This decision put over 1,200 jobs at risk, although American parent company Yum! Brands acquired the remaining UK operations to save 64 of the sites.

The closures in 2025 highlight the ongoing difficulties facing the UK retail sector, as changing consumer behaviours and economic pressures continue to reshape the landscape.