Over 100 retailers fall in 2011 first half

 

Recent victims of the retail crisis were household name stores such as Oddbins, Habitat and Jane Norman. According to the Office of Fair Trading despite a pick up in June the abysmal losses in May could not be rectified.

Figures from corporate finance company Deloitte showed that 43 retailers failed in the second quarter of this year on top of at least 60 that went into administration in the first quarter. 8% more businesses have failed in the second quarter of 2011 than the same period of 2010.

Across all sectors the second quarter of 2011 saw a decline of 19pc on the previous quarter, with a total of 449 companies falling into administration compared with 557 in quarter one 2011.

 

The retail crisis is said to stem from the huge lack in disposable income that consumers have – salaries are falling while the cost of living rises with electricity and gas prices increasing suddenly.

This is not good news for any business – the long standing client base is losing its ability to be loyal however if a business can build itself during such a downturn then hopefully it can succeed fully when the economy eventually picks up.