SHOPPERS have been left gutted after the only shopping centre in a Scottish town announced it will close for good in weeks.
Bosses at St Giles Centre in Elgin, Moray, revealed that all tenants have been notified of the intention to close
St Giles Centre in Elgin will close later this month[/caption]
Bosses have said it comes after ‘severe financial challenges’ in recent years[/caption]
According to BBC Scotland News, the closure comes amid a bitter dispute with the local council over business rates.
The shopping centre has struggled in recent years and a number of units have laid empty after several large retailers left.
Brands including Monsoon, Mountain Warehouse and Superdrug are among those that have left the mall.
However, locals still enjoyed shopping in major stores like Argos, Waterstones and WH Smith.
Bosses have revealed that the shock closure was the result of “severe financial challenges” amid increased costs across the board.
It comes after Moray Council said it had “exhausted all reasonable avenues of support” back in November, but there was still a “significant sum of arrears”.
No way! This is incredibly sad, I have been going in there my entire life
A disappointed shopper
St Giles Centre will pull the shutters down for the last time after January 20.
St Giles Shopping Centre Holdings Ltd said in a statement: “The company has faced severe financial challenges in recent years, with a high level of vacant units, reducing rent roll and increasing service charge costs.
“The company is disappointed at the closure, however after taking professional advice this difficult decision was the only option available.”
Moray Council said it understands that the news will be “sad and unsettling” for those who work in the centre.
A statement released by the local authority said: “The council is aware there has been a closure notice issued to tenants of the St Giles Centre by its owners.
“We appreciate this is sad and unsettling news for people employed there.”
It added: “We currently have one vacant property on Elgin High Street available to traders, who are welcome to find out if it’s suitable for them.
“There are also a number of organisations available locally to assist with relocation or other employment opportunities should businesses need it.”
Shoppers have been left gutted by the news and many have taken to social media to share their disappointment.
Posting on Facebook, one person said: “No way! This is incredibly sad, I have been going in there my entire life”.
Another added: “Shame for all the workers who are employed in the stores within the centre and not much notice for them, especially in January… will be a real shame to see it close”.
Someone else wrote: “This is devastating. The loss of jobs alone and the loss of shops in the area… the effect on the area will be huge”.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
While a fourth chimed in: “There’s job losses which is not good right now but they are also pretty much the only public toilets in the centre of Elgin.”
And a fifth posted: “I feel so sad for the lovely people that work there.
“Myself and my husband done the Calander Club shop this year and we really enjoyed working in the centre and the people who work there.”
Councillor Marc Macrae also told BBC Scotland News that it was “very disappointing” news for those who have lost their jobs.
The councillor, who is also chairman of the Economic Development and Infrastructure Services committee, said this is especially the case given “efforts over considerable time to try and assist the centre through difficult times”.
He added: “Thoughts are with the many staff of the centre and the retailers who have had this news sprung upon them so soon after the festive holidays.”
