High street retailers facing critical financial issues

Nearly high street 140 retailers are in a “critical condition” despite Christmas being their peak trading time, business recovery firm Begbies Traynor has said.High street retailers facing critical financial issuesIts UK business solvency survey found 13,700 more firms were in distress, a 35% rise in the quarter to December.

Begbies Traynor has predicted a rise in the number of both national and regional retail insolvencies in 2013.

The report suggested the worst affected retailers include specialists in books, news and stationery, where distress signals were 85% higher on the previous quarter.

Online retailers, supermarkets and shops selling decor and household goods have meanwhile, seen sales figures improve.

Traders of furniture, lighting, home decorations, hardware and paints have seen a combined 13% fall in distress levels in the last three months, as homeowners decide to “improve, not move”.

Julie Palmer, partner at the company, said many consumers were browsing in high street stores before finding the product they want for a better price on the internet.

“While book sales usually peak in the run up to Christmas, the move by consumers to use traditional book retailers simply for window shopping before purchasing online at discount prices has seriously impacted this sector, which has already suffered considerably from the growing popularity of e-book readers,” she said.

Pharmacies, personal care outlets, and off-licences have also seen their distress signals rise.

Begbies Traynor said this was thanks to consumers being more careful with what they spent their money on.

The latest high-profile high street casualty was electrical chain Comet, which closed all its 236 stores last month.

Ms Palmer added: “Though the performance of national retailers is well documented, it represents just the tip of the iceberg with thousands of smaller and specialist retailers struggling to stay afloat in today’s austerity Britain.

They also predict that a number of national or regional retail chains could fail in the next 12 months.

January 15, 2013 · Home Based Jobs · Comments Closed
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