Beloved toy store closes another 29 stores after drop in profits

An iconic British toy store is set to close 29 of its shops, it’s been reported.

Hamleys has been trading for 265 years and is one of the most easily recognisable British toy brands, more than 100 UK and international branches.

But the brand is set to close 29 of its shops this year after profits dipped outside of the UK.

Companies House data showed Hamley’s profits rose in the 2024 financial year, from £51.4million to £53.3million.

However while revenue from its UK and Europe branches increased, its branches in the rest of the world saw revenue fall from £7.3million to £6.5million.

Hamleys has not yet confirmed which of its branches will close, or how many staff will be affected.

The brand had previously closed 40 of its shops in 2023, but opened 22 new stores this year, The Sun reports.

In its latest accounts published via Companies House at the end of December, Hamleys said: ‘The UK retail market remains challenging going into 2025 as consumer spending continues to be impacted by inflationary pressures.

‘As a result, we remain cautiously optimistic on business growth with a continuous focus on cost optimisation to ensure the profitability of the company.

‘The company is continuously striving to improve the customer experience and proposition across all formats to ensure long-term sustainability of the business.

‘We remain focused in identifying opportunities for future growth and implementing a robust digital strategy is a key growth driver for the UK in 2025.’

Hamleys isn’t the only British high street name looking to downsize.

Clothing brand New Look is shutting 38 branches this year, with Hobbycraft, Poundland, River Island and WHSmith among the well-known names closing their doors.

A Hamleys spokesperson told Metro: ‘We have seen reports in recent days around some Hamleys store closures during 2024 due to the continuing challenges to consumer spending around the world.

‘To be clear, we closed some loss making stores across our international network, but opened 22 new locations.

‘We have seen sales in the majority of our markets rise and we delivered a strong trading year with profits continuing to grow.

‘With a total of 188 stores in 13 countries; with new products, services and formats being successfully introduced, we remain optimistic about on-going performance.’

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