Iceland reveals store closures in huge blow to shoppers

Iceland will close two UK stores by the end of July in a blow to shoppers in the areas affected. 

The supermarket's College Square store in Margate will be closing on 21 June, the frozen supermarket group revealed on Tuesday.  

Iceland said staff working at the Margate store would, where possible, be redeployed elsewhere. 

Its supermarket in Inverness city centre will also close for good on 12 July.  

Customers at the Inverness store had reportedly complained about the parking charges and fines issued by a third-party car park operator, The Press and Journal said. 

Parking charges have become a major issue for local high streets and are regulary cited by shoppers as a reason for not visiting town centres. 

Shop closures: Iceland is closing two stores by the end of July

Shop closures: Iceland is closing two stores by the end of July

Earlier this year, two reports said parking charges were contributing significantly to the death of the high street.

Three in five drivers were deterred from visiting their local high street due to parking chargers, research from Direct Line business insurance found.

Meanwhile, a poll of 11,333 AA members revealed two-third of motorists would be turned off parking near the high street if it cost more than £10 for four to five hours.

A British Retail Consortium's report had previously said that 'high streets and shopping centres were hit particularly hard through 2024 as people veered towards retail parks to take advantage of free parking.'

Mark Summerville, SME product manager at Direct Line Business insurance, said: 'Keeping charges down, or lowering them, could help revive high streets, encourage local businesses to stay open and create additional employment – all of which may also boost council revenues.'

Iceland has not disclosed why either of the two stores were selected for closure. 

On the closure in Margate, an Iceland spokesperson, said: 'Our store colleagues have entered into a consultation process and have been offered opportunities at surrounding stores where possible.' 

On shutting its store in Inverness, Iceland said: 'We can confirm our Iceland store located at Rose Street, Inverness, is scheduled to close on 12th July 2025. 

'Our store colleagues will enter into a consultation process and will be offered opportunities at surrounding stores where possible. 

'Shoppers can visit our local Food Warehouse store in Inverness located on Telford Street, IV3 5LU.' 

In February, Iceland closed its Derbion Shopping Centre branch in Derby and relocated it to nearby London Road.

In recent months, Iceland has shut several shops, including its Welling branch in London.

Branches at Shenley Road, Borehamwood and Alphington Road Retail Park, Exeter, were also axed.

Earlier this year, Iceland said it planned to open 20 Iceland and Food Warehouse stores by the end of April. 

In April, bosses at the group claimed a new 500,000 sq. ft. £100million distribution centre in Warrington would be 'game-changing' for the business. 

The Omega Park Site in Warrington, which opened in partnership with GXO in February, supplies around 350 Iceland stores across the north wets of England, the Scottish borders and Wales. 

The group is aiming to double its network of Food Warehouse stores. Some of the new Food Warehouse stores are expected to be located close to existing Iceland stores. 

In January, Iceland encouraged workers at Sainsbury's who had lost their jobs due to store closures to apply for roles at Iceland. 

On 23 January, Sainsbury's announced it would cut 3,000 jobs and shut down its remaining cafés, patisserie and pizza counters.

Sainsbury's said the move would 'simplify the business', adding that most  shoppers 'do not use the cafés regularly'. 

Sainsbury's also made a 20 per cent reduction in senior management roles, claiming the business faced a 'particularly challenging cost environment'. 

Across Britain, supermarkets face higher employer national insurance contributions and are grappling with shifting consumer habits, cost pressures and the growing demand for convenience and online shopping. 

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