A MAJOR gift card chain has hinted of more stores closures ahead of shutting another two stores.
, which returned to profit earlier this week, warned that rising costs driven by labour tax hikes and the increasing minimum wage continue to make some of its stores financially unviable.
This warning comes despite the closure of 38 stores and the loss of over 300 in the previous financial year.
The card shop, which was acquired by Pillarbox Designs in March 2024, announced a pre-tax profit of £8million for the year ending 29 June 2024.
This represents a significant financial turnaround from the £5.3million pre-tax loss reported in the previous year.
However, in its , the company acknowledged the possibility of additional closures.
A statement from Clintons read: “The company has continued to close loss-making stores and the portfolio of stores is now down to approximately 170 stores.
“The continues to be unpredictable and the company is seeing reduced footfall in the stores year on year.
“The company continues to monitor the performance of the existing estate and to close the poor performing stores, which, whilst impacting on turnover, should improve profitability moving forwards.”
Clintons in Keighley, , announced earlier this month that it will be closing its doors on 14 June.
In preparation for the closure, the store has launched a “closing down” sale, offering 20% off all items.
Meanwhile, “Everything Must Go” signs have been spotted at Clintons' store in Leamington Spa, where discounts of up to 50% are currently available.
However, the final closure date for the Leamington Spa location has yet to be confirmed.
In its latest financial update, the retailer also addressed additional challenges impacting its operations: “Like many other retailers, the company continues to face significant cost pressure on wages given the increases in the national minimum wage.
“Conversely, energy costs for the began to ease during the year with the deal in October 2023 representing a material saving compared to the deal for the prior year.”
Like many businesses, Clintons now faces higher employer national contributions, which have risen from 13.8% to 15%.
Additionally, the threshold at which these contributions must be paid has been lowered from £9,100 to £5,000.
These changes to the tax system were in the and came into effect on 1 April.
At the same time, the national minimum wage saw a notable increase, rising to £12.21 per hour. For workers aged 18-20, the minimum wage increased by £1.40 to £10 per hour.
Clintons was first launched back in 1968 – and quickly became a go-to for Brits looking for greetings cards.
At one point, the chain boasted more than 1,000 branches across the country.
Clintons was contacted for comment.
Other shops leaving the high street
, one of Britain's oldest department stores, has after more than 140 years.
The company will shut its branch in Poole's Dolphin Centre on May 31.
The sale includes fashion, furniture, gifts and cosmetics, being sold for up to 70% off.
Beales chief executive Tony Brown blamed the “devastating impact” of the rise in and the higher for the store closure.
Meanwhile, high street fashion chain has as it scales back its UK footprint.
It is understood to be shutting nearly 100 stores – equivalent to around a quarter of its 364 shops.
Stores in Gateshead, Tyne and Wear, St Austell, and Porth, Rhondda Cynon Taf have launched closing down sales.
Reports suggest that the company has been forced to accelerate the pace of due to tax changes in the .
Meanwhile, due to excessive costs.
The gift shop became a local icon after it opened in the 1990s.
