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

Haulage & Warehousing Services
UK Wide

Utilises a team of experienced drivers to provide tailored logistics solutions, with a focus on home delivery services, whilst also offering complementary warehouse solutions. Serves 20 active clients from a wide range of sectors, including retail, i...

Asking Price: Offers Invited
Turnover: £2,900,000

LEASEHOLD


Automotive Electrical Products & Services
UK Wide

Established for over 50 years.Provides a range of automotive electrical services including air conditioning, heating, tachographs, security systems, vehicle tracking and reversing aids for vehicle, plant and marine industries. Over 100 active clients...

Asking Price: Offers Invited
Turnover: £771,000

FREEHOLD


Freight Forwarding Services
South East, UK

Provides freight forwarding for a range of sectors, as well as warehousing and an array of other complementary services. Serves over 20 clients, with an 80% retention rate.Strong second-tier management team in place. Generates revenue on an internati...

Asking Price: Offers Invited
Turnover: £956,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
11
 
Aug
 

PPL Corp. seeks sale of Western Power Distribution | BUSINESS SALE

PPL Corporation has announced that it has put its UK utility...

 
10
 
Aug
 

Adelie Foods’ Urban Eat brand acquired by Samworth Brothers | BUSINESS SALE

Samworth Brothers has completed the £6.4 million acqui...

 
07
 
Aug
 

Wrexham-based wire firm falls into administration | ADMINISTRATION

Wire manufacturer Wrexham Wire has fallen into administratio...

Free guide: 10 Biggest Buyer Mistakes

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

Email


Related News

 
18
 
Jun
 

Hotel chain Suite Hospitality enters administration | ADMINISTRATION

Suite Hospitality, which operates hotels in Exeter, Windsor ...

 
27
 
Apr
 

Lincs Lifts seeks buyer after appointing administrators | ADMINISTRATION

Scunthorpe-based powered access hire business Lincs Lifts is...

 
03
 
Apr
 

Benito’s Hat to continue trading despite entering administration | ADMINISTRATION

Fast-casual Mexican food chain Benito’s Hat has entere...

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