Two Tayside branches of Semichem are “no longer viable” and will close.
The health retailer will close up to 22 stores across Scotland, Northern Ireland and the North East of England.
The chain, which is owned by Scotmid, said the closures have been prompted by ongoing challenges to high street trading, which have been exacerbated by the Covid-19 pandemic.
On the closure list is its branch in Lochee, Dundee and East High Street in Forfar.
A ‘to let/may sell’ sign is already in place on the Angus branch.
Semichem is in talks with landlords in several locations that are “under review”.
A total of 140 Semichem staff have now entered a formal consultation process.
Management at Scotmid are exploring opportunities to redeploy as many as possible within its wider business.
Change in shopping habits blamed
Karen Scott, head of Semichem, said: “The high street was already struggling to adapt to the pace of change in shopping habits, including out-of-town developments and the rise of internet shopping.
“That change has undoubtedly been accelerated by the Covid-19 pandemic.
“Sadly, we have reached the point where it is no longer viable to keep some of our stores open.
“We are grateful for both Scotmid and subsequent government support, which has undoubtedly prolonged the life of many stores.
“Our priority now is to support affected colleagues at this difficult time.
“We are already looking for redeployment opportunities within the Scotmid group and will help all our staff both personally and professionally.”
Other stores trading ‘satisfactorily’
Semichem was founded by the Kerr family in Ayrshire in 1980 and became part of Scotmid Co-operative in 1995. At the point of acquisition it had 25 stores.
It currently operates 86 stores in shopping centres and on high streets across Great Britain.
Over the last three years, Semichem has invested £2.2 million in refitting stores and trialling a range of new retail concepts.
Ms Scott added: “The remaining stores in our Semichem portfolio are trading satisfactorily given the current circumstances.
“Like many other retailers, we are hopeful that, as restrictions ease, footfall will return to our high streets. Our investment programme will resume in the summer.”
Scotmid chief warned on performance
In an interview with The Courier in September Scotmid chief executive John Brodie warned Scotmid stores were performing far below pre-Covid levels.
At that time he said he would not rush to make any “tough decisions”.
He said: “Some may benefit from the trend of local shopping and so we want to give them every opportunity to build the trade back up.
“We are not immune from the general challenges facing retail at this time.
“We won’t shy away from making decisions but we want to give every store every opportunity.”
