The number of retailers entering into administration fell to its lowest level in four years in the first quarter of 2010.
Retail administrations are down 65% year on year according to research from Deloitte, with 44 retail companies falling into administration in the first quarter of this year compared with 124 in the first quarter of 2009.

Quarter on quarter administrations were down 6%.

Lee Manning, reorganisations services partner at Deloitte, said: "The first quarter of 2009 saw exceptionally high levels of retail administrations and so it is not surprising to se a drop this time round. However, this period can be make-or-break time for struggling retailers so the scale of the decrease suggests that many retailers have been successful in taking the measures necessary to equip their business for tougher trading conditions."

He continued: "Indeed, we have seen an increasing acceptance of the use of CVAs, and proactive steps to better manage cash flows. However, whilst these figures appear to suggest an improvement in fortunes for the retail industry, the outlook is far from plain sailing."

Deloitte's UK head of retail Ian Geddes said: "The UK consumer faces a number of reductions in their disposable income over the next 12-18 months and it is hard to imagine that measures to tackle the national debt will not impact them further. "

Mr Geddes said retailers' costs are continuing to increase and further retail failures seem "inevitable".