A HANDY DIY chain with over 900 stores is set to permanently shut its city centre branch after a 40 per cent slump in footfall.
The Screwfix store will hold its last trading day on March 9.
The store, based in Oxford‘s Botley Road Retail Park, traded tools, accessories and hardware products.
A sign on the door revealed its closure date and directed customers to local branches.
One of the store managers explained that the closure of the Botley Road at the rail bridge in 2023 led to a significant footfall.
He said: “This Screwfix has been here since 2018.
“Since the Botley Road closure, our trade has been massively affected.
“Footfall has reduced from about 220 customers a day to 130-150 customers a day so that’s quite a reduction.
“We used to have a big rush on Sundays at about 4pm with customers stopping off after coming back from the city centre but that stopped after the road closed.
“The university is buying the retail park, so other businesses will also close eventually but the Botley Road closure has speeded up out decision because we don’t know when we will be in a position to build up our trade again.”
A spokesman for Screwfix pointed out that “customers can continue to shop locally at Screwfix Oxford in Cowley, Kidlington and Abingdon.”
They also confirmed the closoure: “The Screwfix – Oxford, Botley Road store will be permanently closed from Monday, March 10 due to a planned redevelopment of the site.
“The last trading day will be Sunday, March 9.
“All impacted colleagues have had the opportunity to relocate to an alternative Screwfix store in the area.
“There are currently no plans in place to close any other stores in Oxfordshire.”
Why are DIY chains struggling?
It has been a tricky time for home improvement chains, both large and small.
It comes as shoppers have been cutting back on spending following the pandemic.
Plus, the recent turmoil in the housing market has meant that homeowners aren’t as focused on DIY projects as they once were.
In the spring, Kingfisher, which owns B&Q and Screwfix, revealed that annual profits had slumped by more than a quarter.
The company reported a 25.1% drop in underlying pre-tax profits to £568million for the year to January 31, 2024.
Window and door specialist Everest called in administrators in April, leaving customers in the dark about their orders.
Last year, the group had previously cautioned profits would slip after a 36% drop in pre-tax profits from £1billion to £611million in the 12 months to January 2023.
Rival Wickes also reported a 31% fall in profits to £52million on flat revenues of £1.55billion for 2023.
Windows and doors company Safestyle collapsed into administration in October last year.
The company has a manufacturing site in Wombwell, near Barnsley and 42 sales branches and depots across the country.
Flooring retailer Tapi recently struck a multimillion-pound rescue deal to save the Carpetright brand and dozens of stores last month.
Tapi purchased 54 of the chain’s stores and two warehouses in a pre-pack administration deal that saved 300 jobs.
However, the deal did not include 200 other stores which all closed their doors.
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.
However, additional costs have added further pain to an already struggling sector.
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April will cost the retail sector £2.3billion.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year.
It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR said: “The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025.”
It comes after almost 170,000 retail workers lost their jobs in 2024.
End-of-year figures compiled by the Centre for Retail Research showed the number of job losses spiked amid the collapse of major chains such as Homebase and Ted Baker.
It said its latest analysis showed that a total of 169,395 retail jobs were lost in the 2024 calendar year to date.
This was up 49,990 – an increase of 41.9% – compared with 2023.
It is the highest annual reading since more than 200,000 jobs were lost in 2020 in the aftermath of the COVID-19 pandemic, which forced retailers to shut their stores during lockdowns.
The centre said 38 major retailers went into administration in 2024, including household names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright and Ted Baker.
Around a third of all retail job losses in 2024, 33% or 55,914 in total, resulted from administrations.
Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes.
Professor Bamfield has warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.”
