Three in ten stores at risk as quarter day approaches

THE high street is likely to see another round of retail failures following the next rent quarter day on Sunday, warns insolvency trade body R3.

Using figures from Bureau van Dijk’s Fame database, the organisation said that 29% of retailers in the North West are showing signs of distress while 20% are considered to have a high risk of failure. In total, over 3,000 retail businesses in the region are showing signs of distress.

R3 argues that for some of these, quarterly rent bill which traditionally falls due on June 25 could be the last straw.

North West regional chair Jeremy Oddie said: “Although retail sales rallied in May following a sharp decline in April, rising costs and lower consumer spending continue to put pressure on retailers.

“However, there are also deeper structural changes taking place within the sector, with more sales being made on the internet and consumers favouring larger shopping centres such as Manchester or the Trafford Centre over regional towns.
 
“Our figures which reveal that three in ten retailers are showing signs of distress is roughly in line with analysis from some experts who believe there is a 30 per cent oversupply in the high street. Clearly, many businesses will need to reduce their costs, restructure or rethink their operations if they are to survive.”