A shoe chain is set to close its Eastgate Street branch in Gloucester this week, ending 60 years of business. As reported by The Sun, the store, which has served local shoppers for decades, will shut on April 12, leaving the chain with only four remaining locations, all in Wales. The closure follows significant financial pressures, including rising National Insurance Contributions and business rates, which have left the store struggling to cover its costs.
Financial Struggles and Increased Costs
Owner David Meek attributed the decision to the recent changes in the National Insurance system, which will see employer contributions rise from 13.8% to 15%. Additionally, the threshold at which these contributions are paid will drop from £9,100 to £5,000. Combined with the reduction in business rate relief, from 75% to 40%, the costs have become unsustainable for the shop. As Meek explained, “We have been struggling with rapidly rising costs and reduced footfall since the pandemic, and the shop has not been covering its costs.”
These financial burdens, coupled with lower customer traffic, have led to the closure. In a post on Facebook, Meek expressed frustration over the situation, stating, “I have held off hoping things would improve, but the recent budget is a disaster for small businesses employing lots of part-time staff like ours.”
What This Means for Shoppers and the Local Community
The closure marks a significant loss for the local community, as A.G. Meek has been a staple on Eastgate Street for 60 years. The shoe chain’s closing down sale offers discounts on a range of branded shoes, and customers can also receive a £10 voucher for future purchases at any of the remaining locations in South Wales.
This closure reflects a broader trend affecting small businesses across the UK, as many retailers struggle with rising costs and changing consumer habits. A.G. Meek joins the ranks of several other high street shops that have had to shut their doors in the face of increasing financial pressures. Despite this, some high street retailers are still finding ways to adapt, shifting to more cost-effective locations or focusing on online sales.
