What: Wilko, an iconic retailer, did not manage to raise profitability in spite of growing sales.

Why it is important: In Europe, nobody is too big to fail.

UK retailer Wilko is set to close all 408 of its stores, marking the end of a business founded in 1930 by JK Wilkinson. Once a thriving business similar to the now-defunct Woolworth’s, Wilko took over many of Woolworth's vacated properties. It grew to over 400 stores and 12,500 employees, expanding its product range over the years. Despite experiencing growth and sales of nearly USD 2 billion in 2018, its profitability began declining due to factors such as rising competition from rivals like B&M and Home Bargains, the pandemic, and consumers' preference for out-of-town shopping locales. Administrator PwC confirmed the store closures after failed rescue talks. A potential rescue deal by the owner of entertainment retailer HMV also fell through. The Range acquired the Wilko brand for a reported USD 6.2 million, without buying any stores, while Poundland agreed to take over 71 Wilko sites, potentially saving 1,800 jobs. PwC had also brokered a USD 16.2 million deal with B&M for 51 Wilko properties, though without job guarantees. This marks the departure of another iconic high street name, leaving many former Wilko employees facing uncertain futures.

UK retailer Wilko closes after 93 years of business