One of the oldest UK department store chains is shutting its last shop, blaming Budget tax and wage increases.
Beales, which opened in Bournemouth in 1881, said trading at its Poole branch would end in May.
Retail bosses said the closure of the historic store ‘illustrates the devastating impact’ of the rise in National Insurance contributions and higher minimum wage, which comes into force in April.
The department store sells homeware and fashion brands including Barbour, which counts model Alexa Chung among its ambassadors.
Beales boss Tony Brown told The Telegraph the store had become ‘unviable’ with the cost rises announced in Labour’s October Budget, and ‘the risks and uncertainty of further tax increases’.
The retailer has also come under pressure from shifting shopping habits in recent years, with younger shoppers turning away from large high street stores towards online rivals.
In January 2020, Beales tumbled into administration, leading to the closure of 22 of its 23 shops.
The British Independent Retailers Association (Bira) warned that the latest closure could be the first of many as retailers struggle with mounting costs.
Commercial director Jeff Moody said: ‘We are deeply saddened to learn of Beales’ closure.
‘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 the devastating impact that recent tax increases are having on our retail sector.’
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
