|
Trade News Archive 2009 January February March April
Subscribe to our newsletter Go to The Wholesaler UK Directory
28th April 2009
Retail failure rate at 'five-year high'
The number of retailers falling into insolvency increased during the first quarter of 2009, new research reveals.
According to research from PricewaterhouseCoopers (PwC), 705 traders found themselves falling victim to the economic downturn, at a rate of more than ten per day.
The figures indicated that retail was among the sectors to be hit the hardest, with PwC suggesting that insolvencies are at a five-year high and a quarter above where they stood in the fourth quarter of 2008.
Andrew Garbutt, retail director at the financial services firm, suggested that 2009 will be all about "survival of the fittest" for shops, with many likely to struggle because of low sales or mounting debts.
However, he added that high rate of store failures was creating new market openings for those traders which find themselves in a better position.
"Nobody wants to see retailers fail but market shares change the furthest and fastest in times like these," Mr Garbutt suggested. "Opportunistic retailers will see these failures as platforms to gain share."
Recently, a business leader from High Wycombe argued that the town's empty shop rate stands at five per cent, much less than the 24 per cent suggested by a Colliers CRE study, This is Local London reported.
(c) 2009
Comment on this news story
Trade News Archive 2008 December November October September August July June May April March February January
|
