NW retail failures climb by 30%

THE number of retail companies falling into administration in the second quarter of this year increased by 30% on the same period last year, according to research by Deloitte.

Overall, the total number of administrations in North West decreased by 30% year-on-year, falling from 111 to 78 cases.

Julian Heathcote, restructuring services director at Deloitte in the North West, said: “The retail sector is going through a significant period of change with many companies buckling under the pressure of weakened consumer confidence and a sluggish economy. “

Several of the region’s larger retailers have been placed into administration within the past few months, including Moben, Dolphin, Focus DIY and TJ Hughes.

Heathcote said that consumer spending is likely to continue declining for the rest fo the year.

“It is difficult to see where the positive growth will come from in the next few months.  Inflation has hit retailers hard in the second quarter and unfortunately we are likely to see retail administrations increase as the year goes on.”