15 Wilko stores at risk of closure in review of lease terms

Wilko is to close up to 15 stores this year in a review of its estate aimed at winning better deals from landlords.

The stores will be shut when leases end unless landlords agree to more “favourable terms” for the home, garden and fmcg retailer.

About 300 staff are to be placed in a 30-day consultation period, while permanent recruitment at each site is frozen, according to the GMB union.

Wilko CEO Jerome Saint-Marc said affected staff would be offered any jobs available in nearby branches.

“Our history is steeped in serving our customers and communities going back to 1930, but there’s no denying the way people shop with us and where they want to shop with us is changing,” Saint-Marc said.

“As a business we’re evolving and this includes working with landlords for more favourable terms, as well as looking at locations and store formats. We’ll continue to pull together to make our business better to secure the future of over 16,000 team members.

“We’ll be doing everything we can to support our affected team members who will be offered any available positions in nearby stores.”

A Wilko spokesman said “outdated lease agreements” had been identified in “legacy locations”.

“Landlord relationships are changing and now is the time to prepare strong foundations and open negotiations with all landlords to enable Wilko to restructure the portfolio,” he said.

He said 11 of the 15 branches had another Wilko within a five-mile radius and closures would not affect the privately owned business’s store opening and relocation programme.

GMB called for landlords to cut rents to save the stores.

GMB national officer Roger Jenkins said: “These closures are devasting for Wilko workers and the communities who use them.

“It’s yet another nail in the high street’s coffin and GMB calls on councils and landlords to review commercial leases and offer lower rents.

“Empty high streets and shopping centres are in no one’s interest but with 400 shops a week closing, this is inevitable – unless the costs of premises can be reduced.”

Jenkins said GMB would now meet with affected members to discuss next steps.

Wilko’s latest full-year results, for the 12 months ended 30 January 2021, revealed a 7.3% slump in sales to £1.4bn.  

Wilko has 414 stores across the UK. These are the 15 threatened with closure: