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

Natural Stone Supply Company: Sourcing/Processing/Distribution
Aberdeenshire, Scotland, UK

This company specialises in supplying the highest quality natural stone products, offering a complete turnkey solution to its customers from sourcing, through to processing, design and final distribution and delivery. Offers invited.

Asking Price: £1,050,000
Turnover: £1,100,000

RELOCATABLE


Precision Engineering Business
North West, UK

Precision Engineering Business for sale operating with a modern, well equipped machine shop, offering Engineering Development Modelling (EDM), CNC turning & milling, grinding, boring and fitting. Offers invited.

Asking Price: Offers Invited
Turnover: £400,000

LEASEHOLD


Accountancy Business
UK Wide

High quality practice with strong middle management on the market for the first time. Established: 25 to 30 years. Strong middle-tier management to support acquirer throughout the transition period and on an ongoing basis. Locations: Cheshire, Mersey...

Asking Price: £1,300,000
Turnover: £1,300,000


View more businesses for sale

News Search

Latest News

 
20
 
Sep
 

Thomas Cook seeking 'last-ditch' fire sale | BUSINESS SALE

Thomas Cook Group is reportedly trying to piece together a l...

 
19
 
Sep
 

Smith & Williamson and Tilney to merge | MERGER

After revealing in August this year that talks were in place...

 
18
 
Sep
 

Infrastructure investment manager takes stake in LJLA | BUSINESS SALE

Infrastructure investment management group, Ancala Partners,...

Free guide: 10 Biggest Buyer Mistakes

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

Email


Related News

 
25
 
Jul
 

Welsh construction contractor selling assets | ADMINISTRATION

Administrators for the Port Talbot construction contractor J...

 
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 ...

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