Business development Fred Heritage · 22 December 2016
Weak Christmas trading leaves thousands of retailers in peril
More than 20, 000 small UK retailers could be facing closure after weak Christmas trading, as levels of ‘significant financial distress? amongst firms in the sector have peaked in December. According to the latest retail sector data from business recovery practice Begbies Traynor, an especially weak Christmas trading period this year has forced thousands of business owners to slash prices, to attract last minute shoppers and increase footfall. This is in advance of the next quarterly rent day in the UK, which will require many retailers to settle outstanding rent debts in January 2017. The number of retail firms experiencing significant financial distress this December has increased by 6 per cent year-on-year compared with 2015, with small businesses bearing the brunt of the sector’s weak Christmas trading period. Of the 21, 802 UK retailers currently in a state of significant financial distress, Begbies Traynor found that 97 per cent were small businesses, highlighting the specific challenges faced by small, independent and local retailers which cannot match larger competitors. Commenting on the statistics, partner and retail expert at Begbies Traynor, Julie Palmer, warmed that without a strong end to the year in terms of sales, many independent retailers would struggle to survive beyond January. with quarterly rent day just around the corner, retailers across the country will be pinning all their hopes on a last minute sales surge from shoppers who have left it too late for online deliveries, to help tip them over into the black, she added.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.