Clintons has hinted that more store closures could be on the horizon after warning of the “significant cost pressure” it faces. The high street card chain shuttered 38 stores and axed over 300 jobs in the last financial year, taking its staff count to 1,415.
The retailer has around 170 stores now – a far cry from the roughly 1,000 branches it had at its peak. In a financial update this week, Clintons announced a pre-tax profit of £8million for the year ending June 29, 2024, up from a £5.3million loss the previous year. But it acknowledged that more “poor performing” stores could close in the future.
In a statement published within its financial results, Clintons said: “The company has continued to close loss-making stores and the portfolio of retail stores is now down to approximately 170 stores. The high street continues to be unpredictable and the company is seeing reduced footfall in the stores year on year.
“The company continues to monitor the performance of the existing estate and to close the poor performing stores, which, whilst impacting on turnover, should improve profitability moving forwards.”
The company added: “Like many other retailers, the company continues to face significant cost pressure on wages given the increases in the national minimum wage. Conversely, energy costs for the business began to ease during the year with the deal in October 2023 representing a material saving compared to the deal for the prior year.”
The minimum wage for workers aged 21 and over has risen from £11.44 an hour to £12.21 an hour, from £8.60 an hour to £10 an hour for those aged 18 to 20, and from £6.40 an hour to £7.55 an hour for under-18s and apprentices.
On top of this, the rate of National Insurance paid by employers has risen from 13.8% to 15%, while the earnings threshold has been lowered from £9,100 per year to £5,000.
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Clintons was founded in 1968 and was acquired by Pillarbox Designs, the parent company of Cardzone, in March 2024. Its new boss James Taylor told Retail Gazette last year that the high street chain was in a “worse state than expected” when it snapped up the business.
Clintons isn’t the only retailer to have struggled in recent months. WHSmith recently confirmed it is selling its 480 high street stores to investment firm and Hobbycraft owner Modella Capital, in a deal worth £76million. The stores will be rebranded as TGJones – meaning the WHSmith name will disappear after 233 years from town centres.
But the retailer will still have its more profitable travel locations, so shops in airports and train stations. These will remain open and will continue to operate under the WHSmith brand.
Meanwhile, Poundland has hired advisory firm Teneo to oversee a sale of its business. Sources told The Telegraph that a number of the 825 stores owned by Poundland could be closed if the chain is sold. Sainsbury’s and Morrisons have also announced plans to get rid of their supermarket cafés. Sainsbury’s will close 61 cafés, while Morrisons will shut 52 cafés along with 17 of its Morrisons Daily convenience stores. The
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