Swedish hardware chain Clas Ohlson has announced it will be shutting its Manchester Arndale store as part of a plan to close all but one of its retail locations nationwide.
Clas Ohlson, which mainly sells hardware, home, leisure and electrical products, has continued to incur “significant losses” over the recent years according to chief executive Lotta Lyra despite implementing measures to increase its high street profitability.
The company will now turn its attention away from physical retail stores to selling online, with Clas Ohlson’s acting UK country manager, Jon Peacock saying within a statement that the move is the best way to successfully continue in a market that the company is committed to being a part of.
The closures are expected to cost the firm around £18m, with the loss of 150 jobs around the country.
With this realigned focus we believe we’ll be able to deliver an even better shopping experience for our customers, by strengthening our supply chain and logistics capabilities, and really focusing on excellent service and product assortment.Jon Peacock – Clas Ohlson
The news of the closures come after the company shared an operating profit drop of 74 per cent to £2.88 million, reports Retail Gazette. An exact date for the Manchester Arndale store closure hasn’t yet been announced.
Only one of the retailer’s existing six stores in Reading, Berkshire will remain open following the business model change.