River Island: sales as UK fashion giant cuts put 1,000 jobs at risk with 33 stores closing - locations at risk

• River Island plans to shut 33 stores, with 71 more under review amid major restructuring
• Over 1,000 jobs are at risk, including roles already cut at its London head office
• The fashion chain blames rising costs and a shift to online shopping for the move
• Losses hit £33.2m in 2023, down from a £2m profit the previous year
• Creditors will vote on the restructuring plan in August; exact store closures not yet confirmed

More than 1,000 jobs are at risk as a UK fashion giant plans to shut 33 of its 230 stores in a sweeping shake-up of its business — with a further 71 shops under review and talks ongoing with landlords.

River Island, which employs around 5,500 people across the UK and Ireland, is the latest big-name brand to scale back its physical footprint in response to rising costs and a shift in shopper behaviour. Locally it has stores in Portsmouth and at Whiteley.

Chief executive Ben Lewis admitted its store estate was “no longer aligned to our customers’ needs” as more people opt to shop online.

The move comes as part of a court-supervised restructuring plan, being managed by PwC, which will be put to a creditor vote in August.

River Island hopes to minimise redundancies, but roles at head office have already been cut, with a redundancy programme launched in January affecting departments including buying and HR.

In 2023, the retailer swung to a £33.2m pre-tax loss after sales fell nearly 20% to £578.1m — a stark contrast to the £2m profit it recorded the year before.

River Island’s struggles mirror those of other embattled retailers, including Poundland, which is also mulling mass store closures and a retreat from online shopping.

Analysts expect more businesses to pursue similar restructuring routes, a legal tool made available during the pandemic, as they grapple with low footfall, higher wages, and mounting business rates.

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Which River Island branches are closing?

Exactly which River Island branches are closing has yet to be confirmed. Further details are expected after the creditor vote later this summer.

Branches in smaller towns or cities with lower footfall are the most vulnerable — particularly where online shopping has significantly eroded in-person sales. These stores may no longer justify their running costs.

Likewise, retail locations in premium or central city sites where rent, business rates, and staffing costs are highest could be on the chopping block — especially if they aren't pulling in enough sales to offset those expenses.

In urban centres where River Island has multiple stores within a short distance (for example, one on a high street and another in a nearby shopping centre), it’s likely the company will consolidate to a single location.

Shops with upcoming lease renewals may also be prime candidates for closure, particularly if landlords are unwilling to negotiate rent reductions or flexible terms.

Stores in dated or declining shopping centres — especially those without strong anchor tenants or good transport links — could also be at risk, as these venues often suffer from reduced customer traffic and a lack of appeal to younger shoppers.

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