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

Provider of Coffee Machines & Related Products
South East, UK

Provides an extensive range of coffee machinery, which is imported from Italy and Spain, and coffee products, which are sourced within the UK. Offers invited.

Asking Price: Offers Invited
Turnover: £1,000,060

FREEHOLD


International Export Services
North West, UK

One of the UK's leading end-to-end service providers. Comprehensive export handling, packing and storage services, providing specialist cargo and goods management to a wide variety of international operations and private clients. 40+ years of success...

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

South Down Fish Bar
Bath, South West, UK

Food Service Businesses: Fish & Chip Shops. Established, high turnover traditional Fish and Chip and hot food takeaway operating from busy parade location, Bath. Offers invited.

Asking Price: £190,000
Turnover: £338,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
24
 
Jan
 

Yorkshire engineering firm completes MBO deal | MBO/MBI

A West Yorkshire engineering group has been taken over by th...

 
22
 
Jan
 

Jewellery retailer enters administration | ADMINISTRATION

A Nottingham-based jewellery and watches company has fallen ...

 
19
 
Jan
 

Luxury lodging group enters administration | ADMINISTRATION

An Essex-based company which operates eight luxury lodge par...

Free guide: 10 Biggest Buyer Mistakes

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

Email


Related News

 
18
 
Dec
 

High street clothing chain enters administration | ADMINISTRATION

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

 
10
 
Oct
 

Bar firm enters administration | ADMINISTRATION

Bar firm Burning Night Group, the owner of a number of Bierk...

 
06
 
Aug
 

Administrators called in for credit union | ADMINISTRATION

Polish Credit Union UK Limited, which launched in 2013 and h...

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