Research from business advisory firm Deloitte has found that the number of retailers falling into administration in 2013 has fell by 6 per cent, despite a marked increase in the final quarter. 183 retailers entered administration in 2013 compared with 194 in 2012. A worrying end to 2013 saw retail administrations increase 11 per cent year-on-year in the final quarter, however.
Deloitte restructuring services partner Lee Manning says “too many retailers have too many stores” as 2013 looks set for more closures. Accountancy firm Deloitte, who became Comet’s administrators in late 2012, said 194 retailers fell into administration last year, compared with 183 in 2011 and 165 in 2010.
A dispute has arisen between Marks & Spencer and its supply chain over plans to make them contribute money towards its own £600 million refurbishment programme. A further sign that small businesses are being squeezed as consumer confidence continues to wane.
43 retailers went into administration in the second quarter of the year, an 8 per cent increase from the same period last year.
Across all sectors the second quarter saw a decline of 19 per cent on the previous quarter, with a total of 449 companies falling into administration compared with 557 in the first quarter of this year.
[caption id="" align="aligncenter" width="322" caption="Habitat was one victim in a sea of household names that fell foul of unfavourable conditions in the retail sector this year."][/caption]
Lee Manning, of Deloitte, said that the “severity of retail distress is far greater than the absolute figures suggest.”
Many consumers are seeing their disposable incomes fall, with their salaries failing to keep pace with alarming increases in the cost of living, especially the sharp increases in gas and electricity bills. This does not bode particularly well for the retail industry, but hopes remain high as the market slowly, but surely, improves.
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