New Look is reportedly set to speed up closures of its stores as it grapples with the increased costs caused by the budget.
Around a quarter of the high street fashion retailer’s 364 stores are at risk of being shut when their leases expire, according to The Times.
The newspaper said the company would have shut some stores regardless of the budget, but that the process would be accelerated due to employers’ national insurance hikes and increases to minimum wage.
MEZIESBLOG understands that no decisions have been made on closures yet.
A New Look spokesperson told Sky’s Money: “Our store estate is an important part of our business, alongside our best-in-class website and app.
“We also continue to invest in our thriving online platform which has resulted in a strong online sales performance, with volumes significantly outpacing last year and an improved online margin.
“On occasion we do have to close stores, either due to the landlord’s request or because the site becomes unviable. However, we always remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate.”
From April, employers’ national insurance contributions will rise from 13.8% to 15%, while the threshold to start paying them will be lowered from £9,100 to £5,000.
The minimum wage for over-21s is also rising to £12.21 an hour – up from £11.44.
New Look narrowed its pre-tax loss to £21.7m for the year to March, down from an £87.8m, despite sales falling 8.9% to £769.2m.
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