Published on 9 - January - 2012
Retail administrations increase by 27% in Q4According to Gazette listings the number of retailers who have fallen into administration over the past year has gone from 165 to 183 - and financial experts predict worse to come in Q1 2012.
The administration numbers went from 33 in the third quarter to 42 in the fourth, despite spanning the lucrative Christmas period. Business advisory firm Deloitte says many business owners were banking on a sales peak during these months, but instead were forced to discount at levels last seen in the aftermath of the Lehman Brothers collapse.
The business rates increase of 5.6% from April will mean further business casualties, according to the company. Further research from Deloitte's Consumer Tracker shows DIY retailers could be hit particularly hard, as 28% of consumers are spending less on furniture and homewares.
The British Retail Consortium agreed with the prediction of more administrations during Spring 2012. BRC director general Stephen Robertson said politicians need to do more for retailers: "The UK's government need to support the sector's efforts to survive, thrive and maintain jobs by holding back the costs for which they are responsible, including business rates, retail levies and the burden of regulation.
"Retail failures leave gaps on our high streets and can result in thousands of job losses. As the private sector's biggest employer and a major source of jobs for the under 25s, retail needs politicians to recognise the folly of making life harder than it already is."
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