In a move that has saddened dessert enthusiasts across the Midlands, the bakery chain Butterwick has drastically reduced its footprint, closing the doors of twelve of its fourteen locations. This includes their original beloved store in Corby, Northamptonshire, marking a significant shift for the once-thriving business.
Founded by Fiona and Ryan Scarborough, Butterwick quickly became a local favorite, known for its delectable sweet treats and artisanal baked goods. The announcement of the closures came as a shock to many loyal customers who had come to rely on Butterwick for everything from everyday pastries to special occasion cakes.
The Scarboroughs released a statement expressing their deep regret over the closures, emphasizing the difficult decision and the impact on their dedicated team members. "It is with deep regret that we announce the closure of all Butterwick stores with immediate effect, apart from our Rushden Lakes and Northampton St Giles locations," they stated, highlighting the challenging circumstances that led to this outcome.
The primary reasons cited for the closures are the rising operating costs and shifting consumer spending habits, issues that have been plaguing retailers across the UK. These factors, combined with increased competition and the lingering effects of the pandemic, created an unsustainable environment for the bakery chain to maintain its widespread presence.
Despite the significant reduction in stores, the Scarboroughs remain optimistic about the future of Butterwick. They view this moment not as an end, but rather as a turning point and a chance to refocus their efforts and return to the brand's core values. The remaining two locations in Rushden Lakes and Northampton St Giles will become the focal points for the future of Butterwick.
The strategy involves concentrating on the in-store bakery experience, emphasizing craftsmanship, freshness, and creativity. This means reviving some of the bakery's most cherished original products, introducing exciting new items, and enhancing the overall menu with handcrafted drinks and freshly-made sandwiches.
Customers who have already placed orders for celebration or wedding cakes need not worry. The Scarboroughs have assured everyone that all existing orders will be honored, upholding the bakery's commitment to its customers, even during this period of transition.
Furthermore, loyalty points and gift cards that have been accumulated by customers will remain valid and fully redeemable at the two remaining stores. This demonstrates the bakery's dedication to rewarding its loyal patrons and ensuring they continue to enjoy the Butterwick experience.
Butterwick's journey began in September 2019, growing rapidly from a small home-based operation specializing in celebration cakes to a chain of shops spanning towns surrounding Corby. This rapid expansion was fueled by the popularity of their products and the dedication of their growing team.
At its peak, Butterwick boasted a team of 80 employees and managed a fleet of delivery vans, showcasing its commitment to providing convenient access to its baked goods. The bakery had become a significant employer in the region, contributing to the local economy and fostering a sense of community.
The Scarboroughs' vision for the future centers on delivering the "very best of Butterwick" through indulgent, high-quality treats and a coffeehouse atmosphere that local communities can take pride in. They expressed heartfelt gratitude to their loyal customers for their unwavering support over the years, acknowledging the significant role that their kindness and encouragement played in the bakery's success.
"Our goal is to deliver the very best of Butterwick: indulgent, high-quality treats and a coffeehouse experience our communities can be proud of," the Scarboroughs stated. "We would like to sincerely thank all of our loyal customers for your support over the years. Your kindness, encouragement, and love for what we do have meant the world to us."
Butterwick's situation is not unique. The retail sector as a whole has been facing significant challenges in recent years. The struggles are exemplified by the recent closure of all 56 stores of a beauty chain that began as a market stall in Lancashire in the 1970s. Read more about this closure.
Several factors contribute to these challenges, including the soaring cost of living, which has led shoppers to cut back on discretionary spending. Additionally, the shift towards online shopping that accelerated during the pandemic continues to impact brick-and-mortar stores, making it more difficult for them to maintain profitability.
The move to online shopping, while offering convenience, has fundamentally altered the retail landscape. High street shops must now compete not only with each other but also with a vast array of online retailers, many of whom have lower overhead costs.
Adding to the pressure are increased costs, including rising energy prices and supply chain disruptions. These expenses further strain already tight margins, making it difficult for retailers to remain competitive.
The British Retail Consortium (BRC) has warned that the Treasury's increase to employer National Insurance contributions (NICs) from April will cost the retail sector an estimated £2.3 billion. This additional financial burden will undoubtedly exacerbate the challenges faced by many retailers.
Simultaneously, the minimum wage is set to rise to £12.21 per hour from April, with the minimum wage for individuals aged 18-20 increasing to £10 per hour, representing a £1.40 increase. While intended to improve the financial well-being of workers, these wage increases can further strain retailers' budgets.
The Centre for Retail Research (CRR) has issued a stark warning, predicting the closure of approximately 17,350 retail sites this year. This projection underscores the severity of the challenges facing the industry and the potential impact on employment and local communities.
The year 2024 was already challenging, with approximately 13,000 shops closing their doors for good, marking a 28% increase compared to the previous year. These figures highlight the ongoing struggle for survival faced by many retailers in the current economic climate.
Professor Joshua Bamfield, director of the CRR, notes that while store closures in 2024 were not as severe as in 2020 or 2022, they remain a cause for concern. The ongoing challenges suggest a need for innovative strategies and government support to help the retail sector adapt and thrive.
End-of-year data compiled by the Centre for Retail Research revealed a significant spike in job losses within the retail sector, largely attributed to the collapse of major chains. This underscores the far-reaching consequences of the economic pressures on retailers, impacting not only business owners but also employees and their families.