
British supermarket giant with over 1,200 locations announces ‘devastating' closure of store with 50 jobs at risk
'HUGE BLOW' British supermarket giant with over 1,200 locations announces 'devastating' closure of store with 50 jobs at risk
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A SUPERMARKET giant has announced a "devastating" store closure - putting 50 jobs at risk.
The popular chain confirmed that it proposes to shut its shop doors due to a rent increase that would make the store no longer "viable commercially", Barking and Dagenham Post reports.
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Asda has announced a store closure which could put 50 jobs on the line
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Jobs at risk as supermarket announces closure
The current lease ends in September.
This closure of Asda's store in Anchor Retail Park, Stepney Green could impact 50 of its employees.
The news has been described as "devastating" by GMB union.
GMB region officer Keith Dixon told Barking and Dagenham Post: "This is devastating news for the shop staff, many of whom have worked at Asda for years.
"We have many GMB members in this store and they are understandably concerned about their jobs."
He added: "We hope that the majority may be able to move to neighbouring stores, but if that is not possible there could be job losses."
Mr Dixon also explained that this closure will be a massive blow to the community who have used the store since its opening nearly 10 years ago.
GMB are attending ongoing consultation meetings in the hopes of securing positions at other locations for these employees.
Mr Dixon explained that those who do not wish to move stores will unfortunately face redundancy.
Costa Coffee Shuts Whitstable Branch: What Shop Closures Mean for UK High Streets
Asda issues statement
An Asda spokesperson said: 'We are currently consulting with colleagues regarding the proposed closure of our Stepney Green supermarket.
"The lease on the premises is due to expire in September, and unfortunately, the new terms proposed by the landlord include a significant rent increase, which would make the store financially unviable.
"Our priority throughout this process is to support our colleagues, and wherever possible, we will look to redeploy them to other roles within Asda.
'We also understand that customers will be disappointed by this decision if it goes ahead, but we would like to reassure them that they can still get their favourite products and great value at our nearby Isle of Dogs superstore.'
Supermarket closures in 2025
Asda is not the only major retailer facing store closures.
The Sun reported last month that a number of Co-op branches are at risk of shutting their doors.
The popular high street store could be closing 34 locations after facing financial struggles.
Morrisons also shuttered 16 of its stores in April this year as the retailer continues to make cuts.
Residents took to Facebook to express their disappointment, with one writing: "It's such a shame."
Why are retailers closing shops?
EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre's decline.
The Sun's business editor Ashley Armstrong explains why so many retailers are shutting their doors.
In many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping.
Falling store sales and rising staff costs have made it even more expensive for shops to stay open.
The British Retail Consortium has predicted that the Treasury's hike to employer NICs from April 2025, 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.
In some cases, retailers are shutting a store and reopening a new shop at the other end of a high street to reflect how a town has changed.
The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing.
Retail parks are increasingly popular with shoppers, who want to be able to get easy, free parking at a time when local councils have hiked parking charges in towns.
Many retailers including Next and Marks & Spencer have been shutting stores on the high street and taking bigger stores in better-performing retail parks instead.
In some cases, stores have been shut when a retailer goes bust, as in the case of Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop and Wilko to name a few.
What's increasingly common is when a chain goes bust a rival retailer or private equity firm snaps up the intellectual property rights so they can own the brand and sell it online.
They may go on to open a handful of stores if there is customer demand, but there are rarely ever as many stores or in the same places.
The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year.

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