A FASHION giant with 510 locations is set to close one of its popular city centre stores.
The Next store in Eldon Square is closing down – but it is not all bad news for shoppers.
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The retail giant is closing the Newcastle branch as it looks to relocate to new premises, although a date for the move is yet to be confirmed.
The store currently located on Newgate Street will be moving to the former Debenhams unit in St Andrew’s Way, according to the BBC.
The new unit has been empty since May 2021, according to local news reports.
Locals appear to have mixed feelings about the move and have taken to social media to share their thoughts.
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One person said: “Next has moved from a prime location to the very bottom of Eldon Square, I don’t understand it, they obviously don’t want the business.”
Another added: “I am actually quite excited.”
The Sun has approached Next for comment and will update here when we know more.
It comes following a string of closures for the fashion chain in the past few months.
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In September last year, the retailer confirmed it would close 11 stores by the end of 2023.
Six of the stores were not expected to reach their target margins, while two were site redevelopment.
Stores have shut down in locations including Bristol, Suffolk, Hertfordshire and Derry in Northern Ireland.
The high street has taken a hit in recent years due to rising rents and shoppers increasingly turning to online retail.
A number of big retailers have fallen into administration including Wilko, Paperchase, and most recently The Body Shop.
Other retailers have also been slimming down the number of high street branches, such as Iceland, Boots and Matalan.
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Argos also closed 42 UK shops, including all 34 of its branches in the Republic of Ireland last June.
The retailer said it is “reducing the number of standalone stores” while opening more stores inside Sainsbury’s supermarkets in a bid to offer customers an even more “convenient” way of shopping.
Marks and Spencer is another retailer that has been making changes to its store portfolio.
In 2022, M&S announced that it would be shutting 67 “lower productivity” stores as part of the 110 stores it had already earmarked for closure.
However, it was not all bad news for M&S shoppers as where some stores closed, others opened up in new locations.
In November last year, nine new openings happened, which included six new stores plus three store renewals.
What else is happening on the high street?
It is not all doom and gloom on the high street and some retailers are bucking the trend and expanding.
Asda is massively expanding its portfolio of smaller Express stores, with plans to open 110 new stores.
Meanwhile, Primark recently confirmed plans to open new branches and invest and renovate more than a dozen of its existing shops.
Discounter chain B&M also said it had plans to open 17 new sites in 2024 with some set to open imminently.
Earlier this year WHSmith also confirmed it would be opening up 15 new shops, but they would not be on the high street.
We have the full list of chains opening stores in 2024 – see if one is coming to a high street near you.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included UK Flooring Direct, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
Last year, around 14% of insolvencies were in retail businesses, according to official figures.
