Financial News
- 31 July 2012, 3:49
Summer Rains Push Retailers Into Insolvency
The number of high street retailers suffering financial collapse rose 10.3% between April and June as the wet weather added to their woes, a new study has revealed.
A total of 426 retailers fell insolvent - including high profile victims Clinton Cards and Game - in the second quarter of 2012, up from 386 last year, according to a report by PriceWaterhouseCoopers (PWC).
High street casualties have been increased year-on-year in each of the past four quarters.
But the wettest April and June on record intensified retailers' problems by keeping shoppers at home and dampening demand for summer clothes.
In the wider economy, the picture was brighter with insolvencies down 3% on 2011, despite the UK now being in the longest double-dip recession on record.
PwC retail specialist Mike Jervis said: "There has been a clear reduction in the incidence of insolvencies over the current recession compared to previous ones, but retail is the sector which keeps bucking this trend."
He said many retailers have too many high street stores as shoppers increasingly move online to sites such as Amazon.
The PwC survey showed that the overall number of insolvencies saw the biggest increase in North East and Cumbria, up 70% to 277. The West saw failure levels drop nearly a third to 117.
what do you think?
john lonsdale
Summer Rains Push Retailers Into Insolvency. Has the Con/Lib government asked for this survey and told them what to say in there findings. BULL..... PEOPLE JUST DON'T HAVE ANY MONEY.
Keith Reeder
Yep - it's not like we've never had rain before. And when even companies like Blacks - WHICH SELL WATERPROOF CLOTHING - end up against the wall, that says everything you need to know...
displayim
Look its simple Blair and Brown borrowed billions, Not bothered about the party details they are all the same, People now have to pay it back.......SOMEHOW!!! Fashion/must have Retailers rely on disposable income..........GUESS WHAT PEOPLE DON'T HAVE IT!!! So Retail closures are inevitable. So kick out the coalition after 2 years and let the Labour Party have another go!!!...........Yer Right!!!
Dave Harrison
It will probably happen but those who think it will be a new dawning of financial security for all and social justice are deluding themselves. Nothing will change only the identity of the minister denying that it is anything to do with them
stephen
displayim if labour borrowed billions can you tell me how they got the deficit down 7% 1997 42% 2007 35% then the banking crises
Michael Hawkins
Stephen was it not labour in power when the banking crisis hit the fan
Thomas Barker
You can actually vote for policies in Switzerland its enshrined in law. The various governments have just endorsed the status quo. But the standard augument is 'they' know best the people are too simple and everybody will be voting for free chocolate. How to end this stranglehold on the people. DON'T VOTE FOR A MAIN STREAM POLITICAL PARTY!
John Becskehazy
Dont this government want any small independant shops to be around for the community. No I dont think they do, Lets get the big Supermarkets open close down the small retailers and then charge what they like. They can borrow what they want because the top Directors controll the Banks and Govern the country. We small shops have no say what so ever.
Lee Bennett
So its the bad weather is it ? Wouldn't be our aming government and the clueless muppet osbornes suicidal policies would it .Like hiking V.A.T up to 20% ......no it must be the weather .Ridiculous the tories have got to go .
john
8:37am on 30/7/2012
Tosh! stagnant wage rates and rising costs leave less money to spend in shops. The Con/Lib government's policies aren't working, Osborne has to go before he does anymore damage to the country.
gengisken1227
9:21am on 30/7/2012
And Brown's ponzi debt fluelled economy was just a minor hicup in history with no decades long consequences, we can surpose ? Are you one of the many Sheeple with the memory of a goldfish?
john
10:39am on 30/7/2012
Don't play the "my party is better than your party" game with me you numpty, there is NO difference between the three main parties, that is why the country is in such a mess, the media gives no coverage of any political party bar the Lab/Lib/Con unholy trinity.
Keith Reeder
11:21am on 30/7/2012
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Dave Harrison
6:15pm on 30/7/2012
John. You say there is no difference between the 3 main parties and I agree wholeheartedly. So what difference will it make if this lot are replaced