In another blow to the High Street Clas Ohlson has announced that it is to close its UK stores as they have been losing money. It is expected that 150 jobs are at risk. They will continue to offer their products online.
“After 10 years, the business in the UK is continuing to incur significant losses despite measures in recent years to optimise the store network.” CEO Lotta Lyra said.
Clas Ohlson only has 6 stores in the UK but they are quite sizeable given the nature of their retail offering. Ironically they occupy many of the ex Woolworths stores.
The firm is making a profit in Nordic countries so it would appear that the property costs in the UK have proved to be too much.
The High Street is proving to be very difficult to operate in these days so it does look likely that further measures will be introduced next year to help. Mike Ashley who perhaps has the biggest stake in the High Street believes that urgent action is taken to tax the internet giants by way of an internet sales tax.