The 144-year-old historic Beales department store is staging a ‘Rachel Reeves Closing Down Sale’ in its final weeks of trading, with giant yellow banners directly blaming the Chancellor for its closure.
The retailer will shut its Bournemouth Dolphin Centre location on May 31, having made headlines with its bold final statement – offering discounts of up to 80% beneath large posters featuring the Chancellor’s image.
“Beales’ decision to explicitly name the Chancellor in its closing down sale reflects the genuine anger and frustration felt across our sector,” says Andrew Goodacre, ceo of the British Independent Retailers Association (Bira). “When a business that has survived for nearly a century and a half takes such a public stance, it demonstrates just how devastating these cumulative tax increases have been.”
The closure comes after Beales’ chief executive Tony Brown cited “punitive business taxes” as making the business unviable, specifically pointing to increases in National Insurance contributions, minimum wage costs, and the reduction in business rates relief.
“This is a Government that, prior to coming in, wanted to revitalise high streets. What they’ve done is find ways of making it more expensive to run a shop. Our members are perplexed, flabbergasted and angry,” Andrew added.
He warns that Beales will not be the last historic name to disappear from Britain’s high streets if urgent action isn’t taken. With approximately 13,000 shops closing in 2024 and forecasts suggesting this could rise to 17,000 closures in 2025, the Association is calling for practical measures including the restoration of free, time-limited parking and a reconsideration of business rate relief policies.
“The closure of Beales isn’t just the loss of another shop, it’s the end of a retail institution,” states Andrew. “Without meaningful intervention, we fear many more independent retailers will be forced to follow suit, permanently altering the character of our high streets.”
Meanwhile, better news is that Bira has welcomed the Bank of England’s decision to reduce interest rates from 4.5% to 4.25%, calling it a “much-needed boost” for the retail sector during challenging economic times. The Association says that the reduction will help alleviate some of the financial pressure on retailers who have been grappling with significant cost increases since April. “For our members, this translates to lower borrowing costs and potentially improved consumer confidence – both essential ingredients for retail recovery,” Andrew highlights.
The announcement comes at a critical time for independent retailers who have faced considerable challenges, including rising operational costs, energy price increases, and the continued impact of inflation on consumer spending.
“Independent retailers know that confident consumers spend more money,” he continued. “With sales needing to increase to keep pace with the significant cost increases faced by the retail sector since April, this decision couldn’t have come at a better time.”
Bira also highlighted that the interest rate cut, combined with two major trade deals secured by the government, should create a more favourable economic environment for small businesses.
Top: The historic Beales department store is currently staging a ‘Rachel Reeves Closing Down Sale’, with the closed sign finally going up on May 31.
