Iceland, the UK-based frozen food retailer, has announced the closure of several stores across the UK, continuing a trend of retail contraction amid challenging economic conditions. Since early 2023, the company has closed over 20 stores, with more closures planned for 2025.
Recent and Upcoming Store Closures
The following Iceland stores have recently closed or are scheduled to close:
- Shenley Road, Borehamwood – Closed on January 4, 2025
- Alphington Road Retail Park, Exeter – Closed in January 2025
- Welling, London – Closed on February 1, 2025
- College Square, Margate – Scheduled to close on June 21, 2025
- Rose Street, Inverness – Scheduled to close on July 12, 2025
In addition to these closures, Iceland shut down its 10 stores in the Channel Islands at the end of 2024 due to a new franchise agreement, which will see Iceland products sold in Alliance stores instead.
Reasons Behind the Closures
The closures are attributed to several factors:
- Economic Pressures: Rising operational costs, including increased National Insurance contributions and wages, have strained the retail sector.
- Changing Shopping Habits: A shift towards online shopping has reduced footfall in physical stores, impacting sales.
- Local Issues: In Inverness, customers cited parking fines as a deterrent to shopping at the Rose Street location.
Future Plans
Despite the closures, Iceland has announced plans to open 20 new stores in 2025, focusing on its larger-format Food Warehouse outlets. The company also opened a new £100 million distribution centre in Warrington in April 2025, aiming to enhance its supply chain efficiency.
Customers affected by the closures are advised to use the to locate their nearest alternative store.
The retail landscape continues to evolve, and Iceland’s strategic adjustments reflect broader trends in consumer behavior and economic challenges facing the sector.