The British Retail Consortium (BRC) has warned that more retailers are likely to go into administration this year, with trading conditions still proving difficult.
Figures compiled by accountancy firm Deloitte revealed that the number of retail administrations increased from 165 in 2010 to 183 over the course of last year, prompting renewed concerns about the industry’s prospects for 2012 in the face of continuing economic uncertainty.
“The next few months are bound to be quieter as consumers rein in spending after Christmas,” said BRC director-general Stephen Robertson. “The UK's governments need to support the sector's efforts to survive, thrive and maintain jobs by holding back the costs for which they are responsible.”
Mr Robertson noted that the number of retail failures in the third quarter of 2011 was “particularly alarming”. He pointed out that the industry is a major source of employment for the under-25s and insisted that measures to boost the struggling sector must be introduced.
Last week, he said in an interview with the Daily Telegraph that the profitability of retailers is a source of real concern and suggested trading conditions could be worse than in 2008, during the depths of the global financial crisis.
