The retail landscape continues to evolve with a wave of closures sweeping through popular chains. This year, shoppers face a turbulent retail environment, with iconic brands like Lidl and Ted Baker among those announcing store closures.
Retail Sector Struggles
Recent years have seen a significant number of retail chains closing branches. The problem intensified in the third quarter of 2024, culminating in warnings from business advisory firm PwC about further closures in early 2025 due to mounting pressures.
PwC’s latest report indicates that retail now accounts for a quarter of all insolvencies in 2024. Specifically, 76 businesses went bankrupt during the last three months of 2024, a stark increase over previous years. Across all sectors, total insolvencies climbed to 661 in the first nine months of the year, marking a 35% rise from 2023 and an 86% jump compared to 2022.
Notable Retail Victims
Among the high-profile casualties is Ted Baker, which shuttered all seven of its outlets in Ireland last year. The chain operated in several prominent locations, including Grafton Street and Arnott’s in Dublin, as well as in other cities like Blanchardstown, Cork, Galway, Limerick, and Kildare.
Ukiyo, a beloved restaurant and nightspot in Dublin, was another casualty, joining three Dylan McGrath-owned businesses in a small part of Dublin city. These establishments, Rustic Stone, Brasserie Sixty-Six, and Bonsai Bar, were all within 50 meters of each other in Dublin 1. The Irish restaurant chain Tolteca also ceased operations, with its branches on Baggot Street, Suffolk Street, Rathmines, and Montrose closing down.
2025 Closures: Early Signs
Even in 2025, shoppers encountered unexpected news. In Cork, a major supermarket chain yanked a sudden closure notice on its door. Lidl, known for its budget-friendly shopping, unexpectedly closed its Cornmarket Street store in the city center on January 3. Shoppers were directed to nearby locations in Wilton, Churchfield, or Tougher instead.
The iconic Lidl store was part of a small shopping center that housed a discount chemist, Chemist Warehouse, and a TK Maxx store, emphasizing the domino effect of such closures.
Hospitality Sector Battling
The hospitality sector, already strained, faces an uncertain future. PwC reported an annual insolvency rate of 58 per 10,000 businesses—a stark contrast to retail’s 27 per 10,000 rate. Over the past 21 months, the average liabilities left behind by liquidated hospitality companies were approximately €380,000.
PwC anticipates a sharp increase in hospitality insolvencies in the first quarter of 2025. Ken Tyrrell, business recovery partner at PwC Ireland, highlighted that smaller businesses will particularly struggle with the mounting costs and economic pressures.
“With the increasing cost of doing business in Ireland, we continue to see insolvencies rise in recent years from historic lows. Both the hospitality and retail sectors are showing signs of stress and will be hoping for a busy trading period in the run-up to Christmas,” Tyrrell said.
Conclusion and Outlook
The retail and hospitality sectors face unprecedented challenges over the coming months. While there are moments of stability, the economic pressures continue to mount, threatening smaller businesses in particular. As the holiday season approaches, both sectors will be hopeful for a surge in consumer spending to alleviate these challenges.
Stay tuned for updates as the retail and hospitality landscapes continue to evolve. Your feedback and support can help us stay informed and provide the latest news. Feel free to share your thoughts in the comments below.
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