A number of big-ticket retail failures might have hit the headlines last year but, in fact, fewer retailers fell into administration in 2016 than they did in 2015, according to new figures.
Analysis from Deloitte shows 92 retailers went into administration last year, down four per cent on the 96 that collapsed in 2015.
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This is despite some really tough operating conditions, driven by lukewarm Christmas sales, a fall in the value of sterling and heavy discounting among competing retailers.
Despite the overall number being down, there was a rise in the number of larger retailers entering administration, from seven in 2015 to 11 last year.
Among the high profile retail names to enter administration in 2016 were BHS, American Apparel and Austin Reed.
Deloitte’s Dan Butters said: “Consumer confidence may be challenged in 2017 by the impact of price inflation in the year ahead.
“In addition, retailers are likely to be faced with additional cost pressures due to a weaker sterling, the impact of the National Living Wage and, critically, business rate increases.”
