Major UK toy brand shuts 29 stores and axes employees as it blames one thing

Hamleys closed 29 stores during its most recent financial year and cut the number of employees in its business.

The number of workers was reduced from 435 to 401. It comes after Hamleys shut 40 shops in the previous 12 months, blaming pressures from inflation. But in better news, Hamleys also opened 22 new sites in its last financial year.

The famous toy retailer now runs 11 stores across the UK and 176 branches worldwide. Hamleys' turnover rose from £51.4million to £53.3million in 2024, according to its latest financial figures reported on Companies House.

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Its pre-tax profits climbed to £3.7million, up from £673,000 from the previous year, and its UK sales increased from £43.9million to £45.9million.

Hamleys was established in London in 1760 and is recognised by the Guinness Book of Records as the oldest toy retailer globally. It has been owned by Reliance Industries, an Indian conglomerate, since 2018.

In a statement, the board said: "We had a strong year, driven primarily by franchise royalties, and we're optimistic about continued growth from it with [the] introduction of new territories along with organic growth of existing territories.

"The UK retail market remains challenging going into 2025 as consumer spending continues to be impacted by inflationary pressures."

It added: "As a result, we remain cautiously optimistic on business growth with a continuous focus on cost optimisation to ensure the profitability of the group.

"The group 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.

"The strategic review undertaken in 2024 to improve customer experience and proposition across all formats, introduction of new products and services, continued overseas growth and entry into new proprietary and franchise markets has delivered positive results for the group in 2024."

It comes after fish and chip shop chain Deep Blue Restaurants revealed it sold off nine of its branches. The restaurant chain parted ways with these sites between October 2024 and May 2025.

Deep Blue Restaurants also owns Harry Ramden’s, having purchased the company from Boparan Restaurant Group six years ago in 2019.

The funds from the sale of the nine Deep Blue Restaurants were used to refurbish some Harry Ramsden’s locations, as well as marketing campaigns. The company has 16 Deep Blue restaurants and eight Harry Ramsden’s sites, according to its website.