The number of 海角视频 retailers grappling with critical financial distress has seen a sharp rise of over 25% quarter-on-quarter, driven by disappointing retail sales in November and uncertainty surrounding the Budget.
Insolvency firm Begbies Traynor's data reveals that the count of 海角视频 retailers in severe financial distress escalated to 2,124 for Q4 2024, up from 1,696 in the previous quarter. However, this represents a marginal year-on-year decrease of less than one per cent from 2,142 in Q4 2023, as reported by .
General retailers experienced the steepest quarter-on-quarter increase, surging over 29%, while food and drug retailers saw an uptick of just over 17%.
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The report highlighted businesses providing retail sale via mail order, takeaway food shops, and mobile food stands as those facing increased critical financial distress.
Begbies Traynor attributed this trend to the cumulative pressures of seasonal demand, escalating operational costs, and dwindling consumer confidence following the Autumn Budget.
The firm noted that these findings coincide with measures in the Budget, such as proposed hikes to employers' national insurance contributions and a rise in the minimum wage, which are anticipated to exacerbate pressure on businesses.
However, the data also indicated a silver lining: the total number of retail businesses in the 海角视频 experiencing 'significant' financial distress was 28,747, marking a decrease from the Q4 2023 figure of 34,494.
Under significant strain
Julie Palmer, a partner at Begbies Traynor, has commented on the resilience and adaptability of some 海角视频 retailers this year, while also acknowledging the significant pressure the sector continues to face.
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She pointed out that "the weaker-than-expected retail sales performance in November, traditionally a critical month for the sector, further underscores the tough trading conditions, as consumers hold off on purchases amid low confidence and rising prices."
Palmer added that the measures announced in the Autumn Budget "Adding to this uncertainty, the measures announced in the Autumn Budget...will significantly dial-up the challenges faced by these businesses."
Looking forward, she cautioned that "as we look ahead to 2025, the outlook is very mixed."
"While some retail businesses are adapting to these pressures, many others remain vulnerable, especially in the face of rising wages, online competition from the likes of Temu and Shein, and fragile consumer confidence," Palmer explained.
She concluded by saying, "With mounting challenges on the horizon, weaker businesses are likely to find little joy as we enter the New Year,".
Despite Begbies' prediction of weaker-than-expected retail sales in November, the latest data from the Office for National Statistics (ONS) showed a slight increase in retail sales by 0.2% last month, following a 0.7% drop in October.