Number of failing retailers on the rise
24 January 2018 - 09:07 by Simon Crisp
More retailers went into administration last year than in 2016, marking the end of half a decade of relative stability for the market in the UK, according to the Telegraph.
A variety of outlets went under over the course of 2017, as revealed in a report from Deloitte which points to a number of factors that are resulting in tougher conditions at the moment.
Some retailers stared into the abyss of financial oblivion but managed to pull themselves back from the edge; Toys R Us is the most notable example in this case, as it was bailed out on the condition that it will shut a minimum of 28 of its bricks and mortar stores as part of a restructuring deal.
Other well known outlets including Debenhams, House of Fraser and New Look have all been on the ropes over the past 12 months. Their share values have taken a hit after admissions that sales were faltering at their stores, as customers chose to carry out safe shopping online rather than visit physical locations.
Chains which did not manage to survive the ravages of 2017 include Store Twenty One, Multiyork and Feather & Black.
Report spokesperson, Dan Butters, said that the issues currently facing companies were unlikely to be alleviated this year, with the popularity of safe shopping online being overshadowed by political uncertainty and the increased costs associated with the weakened pound combined with rising rents.
Retailers which solely operate online are insulated from some of the worse effects of the current crisis, but with so much competitive pressure present at the moment it is still difficult for e-commerce sites to remain viable in many cases. More casualties are anticipated in 2018, although the true extent of the damage will only be appreciable in retrospect.