River Island Embarks on Major Restructuring, Announcing 33 Store

Closures Amidst Shifting Retail Landscape
London, UK - Iconic British fashion retailer River Island has announced a comprehensive restructuring plan that will see the closure of 33 of its 230 UK stores by January next year, with an additional 71 stores facing potential closure pending landlord negotiations. This significant shake-up, overseen by advisory firm PricewaterhouseCoopers (PwC), is a direct response to a challenging retail environment marked by a pronounced shift in consumer behaviour and escalating operational costs. Hundreds of jobs are at risk as the family-owned business, which currently employs around 5,500 people, seeks to realign its physical footprint with evolving customer preferences.
The decision comes in the wake of a recent slump in trading, with the company recording a pre-tax loss of £33.2 million in the 52 weeks ending December 30, 2023, a stark contrast to the £7.5 million profit reported in the previous year. Turnover also saw a substantial decline, falling by over 19% to £578.1 million. River Island executives have squarely attributed these financial difficulties to the "well-documented migration of shoppers from the high street to online," coupled with the "sharp rise in the cost of doing business over the last few years."
Ben Lewis, River Island's chief executive, emphasized the necessity of these measures to secure the long-term viability of the brand. He stated, "River Island is a much-loved retailer, with a decades-long history on the British high street. However, the well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers' needs." The company acknowledges the regrettable impact of potential job losses and has pledged to minimize these where possible.
The restructuring plan, which will require approval from the firm's creditors – companies or individuals to whom River Island owes money – is scheduled for a formal vote in August. If approved, the proposals are expected to inject fresh funding into the business, crucial for fueling its turnaround strategy. River Island has reportedly been working on a cost reduction and profit improvement plan since at least January 2025, and this latest announcement signifies a more drastic step in that ongoing effort.
The challenges faced by River Island are not isolated; they mirror broader trends impacting the UK retail sector. The rise of e-commerce, intensified by the pandemic, has fundamentally altered shopping habits, with consumers increasingly opting for the convenience and accessibility of online platforms. This shift has put immense pressure on traditional brick-and-mortar retailers, forcing them to re-evaluate their store portfolios and operational models. High street stalwarts are contending with increased competition from agile online-only rivals, as well as rising overheads including rents, business rates, and energy costs.
Despite the significant challenges, River Island has been working to adapt. The company has previously highlighted investments in its "customer proposition," including enhanced product ranges, an improved in-store shopping environment, and an elevated digital experience. Recent reports from early 2025 indicated that these efforts were starting to yield positive results, with customers reacting favorably and improved business performance being observed. The aim of this restructuring is to create a more efficient and profitable business that can capitalize on these internal improvements and better navigate the challenging external landscape.
Looking ahead, the retail industry is grappling with a myriad of trends that will continue to shape its future. Beyond the undeniable dominance of online shopping, retailers are increasingly focusing on enhancing omnichannel experiences, seamlessly blending digital and physical touchpoints. This includes innovations such as self-checkout kiosks, virtual try-ons, and personalized recommendations powered by artificial intelligence, all designed to make the in-store experience more engaging and convenient. Sustainability is also becoming a critical factor for consumers, demanding greater transparency in supply chains and ethical sourcing. Experiential retail, where stores become destinations offering more than just products, is another key area of focus, aiming to draw customers back to physical locations.
For River Island, the closure of these stores represents a painful but seemingly necessary step to secure its future. The coming months will be critical as the company seeks creditor approval for its restructuring plan and works to minimize the impact on its workforce, all while striving to maintain its identity as a beloved high street brand in an ever-evolving retail world. The outcome of these negotiations and the subsequent implementation of the turnaround strategy will determine River Island's trajectory in the competitive fashion landscape of the future.
Source@BBC