Many retailers 'on brink of collapse' as they enter new year

Thu, 29 Dec 2016 | BUSINESS NEWS

Thousands of retailers - particularly smaller ones - face collapse in the new year as a not-so-merry Christmas trading period, tighter than tight margins, high staff costs and a weak pound combine to push them to the brink.

Business recovery firm Begbies Traynor is warning that many retailers, particularly smaller ones, may not survive “much beyond the January sales” following a rough-and-tumble 2016.

Earlier this month, data from the Office for National Statistics suggested retail sales jumped 5.9 per cent in November 2016, buoyed by Black Friday, but the Begbies report suggests this failed to carry through into December.

It says 21,802 retailers are now in “significant” financial distress - a figure six per cent higher than the same time last year - after a weak festive trading period and other cost pressures. 97 per cent of those retailers are SMEs.

Begbies says a combination of lukewarm Christmas sales, heavy and prolonged discounting, a struggling sterling and higher staff costs due to the new National Living Wage present a cocktail of problems for the UK’s retail landscape.

Julie Palmer, a partner at Begbies, said: “Levels of financial distress among retailers are now even higher than last year.

"Small businesses, whose margins and cost bases are already stretched to the limit, are undoubtedly the biggest victims of the increasingly cut-throat UK retail environment, unable to compete on price or provide the convenience that savvy shoppers increasingly demand.”

Barring a last-minute surge in shoppers, Ms Palmer warned that, for many retailers, the future is looking bleak.

"Unfortunately, without a strong end to 2016, I'm afraid many smaller retailers in particular may not survive much beyond the January sales."

Keep an eye on our up-to-date info on retailers in administration.


Share this article



Latest Businesses for Sale

Designer & Manufacturer of Consumer Entertainment Robotics (Fast Sale)
UK Wide

Expressions of interest for the business and assets are required by 5pm on 24th July 2019 with bids anticipated shortly thereafter. An opportunity exists to acquire the shares or alternatively the business and assets of this UK based, innovative comp...

Asking Price: Offers Invited
Turnover: £5m+

Manufacturer of Precision Instrumentation Products
UK Wide

*Trade Enquiries Only*. A leading UK designer, manufacturer and global distributor of critical components in specified compression fittings with a crucial safety function. Offers invited.

Asking Price: Offers Invited
Turnover: £1,900,000

Manufacturer of Nets
South West, UK

Manufacturer of Nets for everything except fishing. More than 130 years of continuous trading. The Company was founded in 1889 and is a very well established manufacturing business and has been a pioneer in the industry and consistently & successfull...

Asking Price: £450,000
Turnover: £522,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
19
 
Jul
 

Outdoor activity centre completes MBO | BUSINESS SALE

An outdoor water activity centre has been successfully sold ...

 
18
 
Jul
 
 
17
 
Jul
 

Preston caravan manufacturer seeks buyer following administration | ADMINISTRATION

A caravan manufacturing business in Preston is on the lookou...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
25
 
Jun
 

Port Talbot construction business enters administration | ADMINISTRATION

A construction company based in Port Talbot has fallen into ...

 
05
 
Jun
 

North Yorkshire bathroom supplier enters administration | ADMINISTRATION

A bathroom supplier has collapsed into administration after ...

 
18
 
Dec
 

High street clothing chain enters administration | ADMINISTRATION

A prominent high street clothing chain has collapsed into ad...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources