One of Britain’s biggest high street bookmakers is set to close the doors of between 40 and 50 of its betting shops as the company fine tunes its presence in “secondary locations”.
Ladbrokes says that having expanded its amount of shops over the last two years to include premises in locations with higher footfall, it now wishes to optimise its estate by getting rid of around 40 to 50 non-profit making shops in secondary locations.
Despite the many recent headlines around Fixed Odds Betting Terminals (FOBTs) and the fact that the machines are said to contribute to 50% of High Street bookies profits, the operator says the impending closures are not related to FOBTs. However, it did say that its move to reduce its amount of High Street shops is likely to become a “trend in coming years” as many bookmakers shut the doors of shops in “areas of over representation”.
In the past two years, Ladbrokes has opened around 200 shops, bringing its total number of stores to over 2,300. The operator’s chief executive Richard Glynn has been under pressure following four profit warnings within the last twenty months alone, and is expected to make a statement that the bookmaker’s recent store openings will produce a payback within 36 months.