Due to recent tax rises, the closure of Beale’s, one of Britain’s oldest department stores, signals a “devastating new chapter” for Britain’s high streets, says the British Independent Retailers Association (Bira).
The 143-year-old retail department store, that opened its doors in Bournemouth in 1881, has announced the closure of its final remaining store in Poole’s Dolphin Centre by the end of May, blaming increased tax burdens, introduced in last October’s Budget, for making the business unviable.
“We are deeply saddened to learn of Beales’ closure,” commented Jeff Moody, Bira’s commercial director. “This is not just the loss of another shop – it represents the end of a retail institution that has served communities for nearly one and a half centuries. This closure starkly illustrates thedevastating impact that recent tax increases are having on our retail sector.”
The closure announcement follows the October 2024 Budget, which introduced significant increases in employers’ National Insurance contributions from 13.5 per cent to 15 per cent, alongside a rise in the minimum wage to £12.21 per hour for workers aged 21 and over.
Tony Brown, Beales’ chief executive, confirmed that these tax rises, combined with the uncertainty of future increases, have made the business “unviable”. The closure will be managed to ensure no suppliers face financial losses, though it marks the end of an era for British retail.
Bira warns that this closure could be the first of many as retailers struggle with mounting costs. Recent Bira survey data shows that 46% of retailers reported worse trading conditions in early 2024 compared to the previous year, with confidence levels remaining low for the second quarter.
Jeff added: “The closure of Beales is, tragically, unlikely to be an isolated incident. With the reduction in business rates relief from 75% to 40% set for April 2025, alongside these other tax increases, many of our members are facing impossible decisions about their future. This is a critical moment for British retail, and we urgently need policy makers to recognise the devastating impact their decisions are having on our high streets.”
Bira is currently in discussions with government departments to address the impact of these changes and develop a fairer business rates structure.
Top: Beale’s in Poole will be closing at the end of May.
