Major UK supermarket chain set to close branch with another 34 stores at risk

A popular UK supermarket chain is set to close one of its branches, with another 34 scheduled for closure. The food store has announced its "difficult decision" to shut down the branch next month, citing challenges that led to the closure.

The Co-op's branch on Derby Road in Ashby-de-la-Zouch, Leicestershire, will be closed forever on Saturday, November 22. The supermarket giant has faced criticism for operating two stores very close to each other near Ashby Town Centre. The issue arose after the Central Co-op relocated from the top of Market Street to a new site near an already existing Co-op store.

The move sparked concerns among locals, who questioned the need for two branches in such close proximity and raised doubts about the company's planning and use of retail space in the area.

A statement from a Co-op spokesperson said: "Our store in Ashby-de-la-Zouch will close next month. Our priority is to fully support colleagues, who have been informed. We would like to thank the community for its support of this store."

The spokesperson added: "We carry-out reviews of our existing store locations, and, sometimes, only after very careful consideration, we take the difficult decision to close a store."

The supermarket chain is facing significant financial challenges, which could lead to the closure of an additional 34 stores.

Earlier reports suggest that locations in Braintree, Chelmsford, Basildon, Thurrock, and Southend are among those potentially affected. This development has raised concerns about the future of the company's presence in several communities, as shoppers and employees brace for possible changes to their local branches.

Chelmsford Star Co-op admitted it was "struggling financially" and could be forced to close if a proposed merger between Chelmsford Star Co-operative and Central Co-op does not go ahead.

The company stated that its financial difficulties have worsened due to rising costs, particularly increases in National Insurance contributions and the living wage.