Sudden Closure of The Square Shopping Centre in Birmingham
A popular shopping centre, home to 30 pubs, restaurants, and shops, has unexpectedly shut down after suddenly closing its doors three days ago. Many bewildered customers were abruptly instructed to exit the vibrant site on Tuesday evening.
The Square Shopping Centre, located in Birmingham’s Priory Square, has now confirmed its continued closure following a comprehensive fire risk assessment conducted by management. In an official statement reported by the BBC, the management emphasized that health and safety protocols had been rigorously checked, leading to the recommendation that the site remain closed for the time being. They anticipate providing a further update early next week.
Interestingly, West Midlands Fire Service clarified to The Sun that there was an unrelated incident at a hotel on Priory Queensway on the same Tuesday, but stressed that these occurrences are not connected. They also confirmed that they had no involvement with The Square.
Matthew Eason, the landlord of The Grey Lantern pub, shared his experience with BirminghamLive, stating, “We were given notice by the centre’s management team that we needed to vacate by 7 PM. They handed us a letter at 5:30 PM, which didn’t leave us much time to prepare.” He added that the letter was quite vague, indicating that they needed to book an appointment to regain access, hinting that the reopening might not occur anytime soon. Furthermore, Mr. Eason mentioned that the pub’s manager was confronted by security personnel when attempting to re-enter the building the following day.
A notice affixed to the shopping centre’s window read: “Priory Square is currently closed. All units are shut until further notice, and updates will be provided in due course. We appreciate the disruption this closure may cause, but health and safety remains our utmost priority.”
Challenges Facing Retailers Amid Economic Pressures
The retail sector has been grappling with significant challenges since the pandemic, with consumers tightening their spending due to the ongoing cost of living crisis. Rising energy costs and a shift towards online shopping have further compounded the difficulties faced by many high street retailers. The British Retail Consortium has projected that the government’s increase in employer National Insurance contributions (NICs) starting in April will burden the retail sector with an additional £2.3 billion.
Moreover, the minimum wage is set to rise to £12.21 per hour in April, while the minimum wage for younger workers, aged 18-20, will increase to £10 per hour, an uplift of £1.40. The Centre for Retail Research (CRR) has indicated that approximately 17,350 retail outlets are expected to close this year. This comes on the heels of a challenging 2024, during which 13,000 shops shuttered their doors, marking a 28% increase from the previous year.
Professor Joshua Bamfield, director of the CRR, commented: “The results for 2024 show that while the overall store closure outcomes were not as dire as in 2020 or 2022, the situation remains concerning, with even tougher times predicted for 2025.” The CRR’s recent analysis revealed that nearly 170,000 retail jobs were lost in 2024, a steep rise attributed to the collapses of major chains like Homebase and Ted Baker.
In detail, it was found that a total of 169,395 retail positions were eliminated in the calendar year of 2024, marking an increase of 41.9%—an additional 49,990 jobs compared to 2023. This figure represents the highest annual job loss since the pandemic’s aftermath in 2020, which saw over 200,000 positions vanish due to enforced lockdowns. Notably, 38 significant retailers went into administration in 2024, including well-known names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright, and Ted Baker. Administrations accounted for a third of all retail job losses in 2024, totaling 55,914 jobs.
Experts warn that small, independent high street shops may face particularly harsh challenges in 2025 due to impending budgetary tax and wage modifications. Professor Bamfield has forewarned of a grim outlook, predicting that as many as 202,000 jobs could be lost in the sector. “With rising costs for operating stores and consumer households, we are likely to see retail job losses surpass the peak experienced during the pandemic in 2020,” he stated.
Upcoming Store Closures and Industry Trends
In a related development, Sports Direct is set to close its Newmarket Road store in Cambridge, which has already initiated a significant closing down sale to clear out existing stock before its final departure. Additionally, the popular outdoor clothing brand Trespass will close its location at the Highcross shopping centre in Leicester, with its last day of operation scheduled for Monday, March 31. This retailer had previously announced the closure of six UK outlets, including branches in Norwich and Sutton Coldfield throughout 2023.
As the situation evolves, various retailers—both independent and corporate giants—continue to feel the strain. Numerous shops are poised to shut their doors nationwide before the end of the month, marking yet another blow to the UK high streets. Despite just entering 2025, many major brands are already facing severe challenges.
- Rising living costs are limiting consumer spending.
- Increased online shopping trends have negatively impacted brick-and-mortar retail.
This week, the former high street staple Quiz declared bankruptcy, resulting in the immediate closure of 23 stores. Meanwhile, New Look has made the difficult decision to close nearly 100 branches due to challenges stemming from Autumn Budget tax changes. Approximately a quarter of New Look’s 364 stores are at risk when their leases expire, which translates to around 91 stores, affecting their workforce of 8,000 employees significantly.
It is understood that the recent push for closures is largely driven by the impending hike in National Insurance contributions for employers, a move announced by Chancellor Rachel Reeves in October, which is expected to significantly impact retailers. The British Retail Consortium has warned that these changes will create a £2.3 billion burden for the sector.
In a further shake-up, WHSmith, a brand that has been a part of British high streets for 230 years, may soon vanish. Meanwhile, Boots UK has reported that 253 of its stores have closed as part of ongoing cost-cutting measures. Additionally, Homebase has initiated a major closing down sale as it prepares to shutter two more stores amid a total of 35 closures this month.