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Wilko could axe 15 stores as talks start on leases

By Frank Prenesti

Date: Monday 10 Jan 2022

Wilko could axe 15 stores as talks start on leases

(Sharecast News) - UK retailer Wilko could close up to 15 stores this year as it opens up talks with landlords over "outdated lease arrangements", the company said on Monday.
Privately-owned Wilko, which sells everything from hand tools to cushions from 414 outlets and online, said the stores affected would close when their leases ended unless more favourable terms could be agreed.

"Landlord relationships are changing and now is the time to prepare strong foundations and open negotiations with all landlords to enable Wilko to restructure the portfolio," the company said in a statement.

It added that any closures would not affect new openings or Wilko's store relocation programme.

"Our history is steeped in serving our customers and communities going back to 1930 but there's no denying the way people shop with us and where they want to shop with us is changing," said chief executive Jerome Saint-Marc.

"As a business we're evolving and this includes working with landlords for more favourable terms, as well as looking at locations and store formats."

Saint-Marc said staff affected by the closures would be offered "any available positions in nearby stores".

The GMB union, which represents workers in the retail sector, said the move was "another nail in the High Street's coffin" and warned of hundreds of job losses.

"These closures are devastating for Wilko workers and the communities who use them," said national officer Roger Jenkins.

"It's yet another nail in the High Street's coffin and GMB calls on councils and landlords to review commercial leases and offer lower rents.

"Empty high streets and shopping centres are in no one's interest and but with 400 shops a week closing, this is inevitable, unless the costs of premises can be reduced.

He said the union would now meet with Wilko members to discuss next steps.

Planned closures include Shipley, Bournemouth and Stockton next month, Scunthorpe in March, Grantham and Redditch in May, Rotherham, Skegness and Sutton Coldfield in June, Llanelli in August, Merthyr Tydfil in September and Cleethorpes in October.

Wilko said 11 of the 15 stores had an alternative Wilko within five miles.

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